Study On The Warranties In Marine Insurance

The characteristics of the traditional warranties which are regarded as the "trump card" of the insurer are the stringency of performance and rigidity of breach of warranties.This thesis introduces the basic theory of warranties by the historical and comparative methods, from the view of fairness, and analyzes the existing defects of warranties, and discusses the reform of warranties according to the legislation of some countries and their practices.The first chapter defines warranty and its nature The warranties in the marine insurance, which are different from those in other laws, refer to that 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. Whether the insured undertakes the obligation of warranties is the condition precedent for the insurer to undertake the obligation of insurance in the British law.The second chapter introduces the form of the warranties. The warranties in the marine insurance include implied warranties and express warranties. Implied warranties mainly include the warranty of legality and seaworthiness of ship, and express warranties are agreed by both parties. There are only express warranties, and no implied warranties in our country's law.The third chapter analyzes the performance of the obligation of warranties. The principle of stringent performance is the nuclear of traditional warranties. In Britain, the performance of the obligation of warranties is the condition precedent for the insurer to undertake the liability of insurance. Therefore the breach.of warranties discharges the liability of insurance. But in China the warranties are not treated as "condition precedent", but as a special provision of the contract, unless both sides have other agreements. The breach of warranties only confersthe insurer with the optional rights to cancel a contract.The fourth chapter evaluate the defects of the warranties in the marine insurance and expounds the trend of the development. The traditional warranties are so strict to the insured that the insurer can often cancel the contract or refuse to indemnify, which is unreasonable. In order to overcome this kind of defects, and set up a fair and reasonable lay system, the practice of legislative and juristic organs in some countries such as U.S.A, Canada and Australia, introduce the standard of importance and standard of correlation or causal relation into the system of the warrantiesThe fifth chapter discuss the shortcomings of the warranties system in China, and gives some legislative suggestions to perfect it.