Page 210 - Fire Insurance Ebook IC 57

Fire and Consequential Loss Insurance

(ii) to take possession of or require to be delivered to them any
insured property on the premises at the time of loss.

(iii) to deal with such property by removal, sorting, disposal etc.

Warranties
A warranty is an undertaking by the insured

(a) that some particular thing shall or shall not be done or
(b) that some condition shall be fulfilled or
(c) whereby he affirms or negatives the existence of a particular state

of facts.
n In insurance law, a warranty is a condition precedent. Contract

will not be valid if warranties are not complied.

n In practice, insurers will usually waive a breach of warranty if it is
merely of a technical nature and does not contribute to or
aggravate the loss.

n In such circumstances claims are treated as 'non-standard1 claims
and settled according to certain guidelines adopted by the
Companies.

n Warranty forms attached to the policy incorporate a condition to
the effect that all warranties apply during the entire currency of
the policy.

Distinction between warranties and representations

Warranties Representations

Can be inserted before concluding the The latter are statements
contract or during the contract made orally or in writing
before or at the time of
concluding the contract.

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