A warranty in Insurance

A warranty in Insurance is a statement or condition which is incorporated in the contract relating to risk, which the applicant presents as true & upon which it is presumed that the insurer relied in issuing the contract.

In fact, Marine Insurance developed the doctrine of warranty because the marine underwriter was rarely called upon or got a chance to inspect the ship as it might be lying thousands of miles away at ports or in voyage.

Therefore, he had to depend entirely upon the word of the person seeking the Insurance. Hence, all information in the application for the Insurance was warranted to be absolutely exact and true.

If it turned out to be untrue, the Insurance was voidable whether the misstatement was intentional or unintentional, material to the loss or immaterial.

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