Provsions on Disclosures and Warranties - Are Legislative Changes Warranted?

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.

- By Basudev Sanyal, Retired Deputy General Manager, United India Insurance Co Ltd

This discussion emanates from a nearly two year old judgment of our Supreme Court rendered on 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 Insurance Times titled, "Unlocking the Implication of Warranty" by Prof (Dr) Abhijit K.Chattoraj, both of which drew attention to a very important subject for Insurance in general and for Marine Insurance in particular - the subject of warranties.

Warranties in light of a Supreme Court case

A warranty as defined in Sec 35(1) of the Marine Insurance Act, 1963 (this corresponds to Sec 33(1) of the UK Marine Insurance Act, 1906) "....... means a promissory warranty, that is to say a warranty by which the assured undertakes that some particular thing shall or shall not be done, or that some condition shall be fulfilled, or whereby he affirms or negatives the existence of a particular state of facts."

According to this definition warranties include undertakings (a) as to past or present facts and that some condition has been fulfilled (affirmative warranties), (b) as to future conduct of the assured (continuing/promissory warranties)

The legislative provisions on warranties can be viewed afresh in light of the Supreme Court case titled, "Hind Offshore vs Iffco Tokio General Insurance Co Ltd" {(2023) 9 SCC 407)} involving a Marine Hull claim.

The details of the case are as follows :

Hind Offshore Pvt. Ltd entered into a Bareboat Charter Party Agreement with, the registered owner of a sea vessel called M.V. Sea Panther.