Page 136 - IC38 GENERAL INSURANCE

is of a purely technical nature and does not, in any way, contribute to or
aggravate the loss, insurers at their discretion may process the claims according
to norms and guidelines as per company policy. In such case, losses can be
treated as compromise claims and settled usual for a high percentage of the
claim but not for 100 percent.
A personal accident policy may have the following warranty:

It is warranted that not more than five Insured Persons should travel
together in the same air conveyance at one time. The warranty may go on to
say how the claims would be dealt if there is a breach of this warranty.
Test Yourself 6
Which of the below statement is correct with regards to a warranty?
I. A warranty is a condition which is implied without being stated in the policy
II. A warranty is a condition expressly stated in the policy
III. A warranty is a condition expressly stated in the policy and communicated
to the insured separately and not as part of the policy document
IV. If a warranty is breached, the claim can still be paid if it is not material to
the risk

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