A Research On Warranty In Marine Insurance

Warranty is one of the most important theories in marine insurance in U.K. and U.S.. Warranty clauses are the basic content in marine insurance contracts. If the assureds breach these clauses, the insurance contracts may be terminated.Warranty clauses are also the outcome of the application of the doctrine of utmost good faith in marine insurance. It has great effect on the insurer to control the risk. However, the insurance law in our country has not stipulated anything about it, only the China Maritime Code has mentioned it. Its importance has not been embodied in Insurance Law to regulate general insurance contracts.The thesis introduces the origin and theory basis of warranty, then analyses the rationality and irrationality of the system. The focus is to analyse the nature of warranty in order to advance reasonable standard of performance and consequences for its breach.The thesis answers how to make the system of warranty more fair for the benefit of both the insurers and the asureds.This thesis uses the warranty system in U.K and U.S as reference. Aiming at the defects in the warranty system in marine insurance in our country, considering the current circumstances in the marine insurance market in our country and realizing the reform experience in other countries, the thesis brings about the way to make the warranty system in marine insurance in our country better.Based on the research work, it is advisable that the warranty system should be remained in the law of marine insurance in our country. There are several suggestions to build up and improve the warranty system in our country: First, the nature of the warranty clause and the category of warranty should be made clear by definition in China Maritime Code. Secondly, there is no need to stipulate implied warranty in our country. Thirdly, the element of warranty should be stipulated in the Code to make it easier for the judge to recogonize the clause when hearing the case and it will make it more easier for the assured to pick them out and act according to the standard of performance. Fourthly, the Code should stipulate the standard for breach of warranty and the legal consequence for its breach. Fifthly, at this stage, it is necessary to impose duty on the insurer to explain the warranty clause to the assured.