ABSTRACT
There are two types of warranties identified by the Act: express and implied warranties.1 A warranty in marine insurance, whether express or implied, is indeed a very special term of the contract. In the law of marine insurance, a warranty is also referred to as a promissory warranty and this is made clear by s 33(1), which defines a warranty to mean:
There are certain features, common to both express and implied warranties, laid down by case law and the Act relating to the nature of a marine insurance warranty and the effect of its breach. These qualities have bestowed upon it its undoubted strength and importance as a contractual term: • A promissory warranty does not have to be material to the risk; • A promissory warranty must be exactly complied with;2
• There is no defence for a breach of a promissory warranty; • A breach of a promissory warranty is irremediable;3
• A causal connection between breach and loss need not be shown; • A breach of a warranty automatically discharges the insurer from liability;
and • A breach of a warranty may be waived.
