Page 30 - The Insurance Times August 2025

Disclosures and Warranties

Provsions on

Disclosures and

Warranties - Are

Legislative Changes

Basudev Sanyal
Warranted? Retired Deputy General Manager,
United India Insurance Co Ltd

From a perusal of Sections 35, 37, 41(5) and 55 of the Marine Insurance Act, 1963 relating to
warranties, the Court noted that a warranty is a condition which has to be exactly complied with,
whether it is material to the risk or not. Hence, if an insured breaches a warranty, the insurer is
discharged from its liability w.e.f. from the date of breach of warranty.

T his discussion emanates from a nearly two year (a) as to past or present facts and that some condition has

been fulfilled (affirmative warranties), (b) as to future
old judgment of our Supreme Court rendered on
conduct of the assured (continuing/promissory warranties)
9th August ,2023, in the case of " Hind Offshore
vs. Iffco Tokio General Insurance Co Ltd "{(2023)
9 SCC 407) and an article in the March ,2025 issue of the The legislative provisions on warranties can be viewed
Insurance Times titled," Unlocking the Implication of afresh in light of the Supreme Court case titled ,"Hind
Warranty "by Prof (Dr) Abhijit K.Chattoraj ,both of which Offshore vs Iffco Tokio General Insurance Co Ltd" {(2023)
drew attention to a very important subject for Insurance in 9 SCC 407) }involving a Marine Hull claim .
general and for Marine Insurance in particular -the subject
The details of the case are as follows :
of warranties.
Hind Offshore Pvt. Ltd entered into a Bareboat Charter Party
Warranties in light of a Supreme Court Agreement with, the registered owner of a sea vessel called
M.V. Sea Panther.
case

A warranty as defined in Sec 35(1) of the Marine Insurance A bareboat charter party agreement is an arrangement for
Act, 1963 (this corresponds to Sec 33(1) of the UK Marine the chartering a vessel where the owner does not provide
Insurance Act, 1906) " . means a promissory warranty, any crew or provisions to the person chartering the vessel.
that is to say a warranty by which the assured undertakes Hind Offshore, in its capacity as a bare boat charterer of
that some particular thing shall or shall not be done, or that the vessel took a Marine Hull Insurance Policy for the said
some condition shall be fulfilled, or whereby he affirms or Vessel from the insurer, IFFCO - Tokio General Insurance Co.
negatives the existence of a particular state of facts." Ltd incorporating ITC Hulls 1.10.83.

According to this definition warranties include undertakings During the currency of the Policy, the Vessel suffered major

The Insurance Times August 2025 27