Research On Issues Relate To The Establishment Of Warranty Of Marine Insurance In China

Warranty is a particular system of marine insurance law.It is an obligation for the insured required by the principle of utmost good faith.Warranty was developed through the cases and perfected step by step.Marine Insurance Act 1906,summed up the cases before,and made its provisions of a comprehensive and systematic.Warranty was originally established to control the risk.In the past,communication and technology undeveloped,the judgment of a prudent insurer depends largely on the disclosure and promise of the insured when determining the scope of cover.This situation results in the extreme asymmetric information between the parties of insurance contract,which leads easily to moral hazard in the marine insurance market.In order to control the risk,insurer had to seek a protective system,and warranty just to meet the needs of the insurer.Insurer stipulates this system strictly as far as possible to protect his interest.Warranty,after long-term development and practice,constantly enriches its connotation.At the same time,in practice,a large number of complex and diverse issues, and its harsh consequences,the negative effects of warranty are reflected gradually and questioned by many people,especially the insured.Warranty is only referred to in Article 235 of Maritime Code of China.Generally speaking,the existing provision in the law is incomplete and easily causes deviation in understanding in theory and practice.The establishment of this system,not only balances the distribution of rights and obligations between the insurer and the insured, but also promotes the development of the shipping industry.Therefore,research on this issue can enhances the operability in practice as well as improves the guidance in theory.Methods adopted by this paper are discussion and commentary and cases cited.To start with,this paper introduces the warranty under English Marine Insurance Act 1906, containing its definition,together with the important role played in the marine insurance market in the past,and evaluates its value.Then sums up the provisions of warranty for the moment of legislation and practice in our country,and estimates its actuality in theory and practice.Subsequently investigates the relation and difference between warranty and disclosure.Insurance industry in China is in its developing stage,still much need for the stringent system to regulate the conduct of the insured and to maintain the stable development of the insurance market.It is therefore necessary to establish the system in our country.Thus some obvious issues are examined in this paper.