Mataracy
VIP Contributor
The definition of warranty is a stipulation as to the existence or continuation of certain state of affairs or to the performance otherwise of some of act by the Insured. In other words, a warranty is an undertaken by the insured that something ng shall be done or not or certain facts exists or not.
Warranty may be Continues or Promissory or Non Promissory. A Promissory warrant denotes that the insured is required to comply with the conditions throughout the currencyvof the contract. Butcin Non- Promissory Warranty, the correctness of the statement is only at the time of making that statement and does not apply to any future condition.
A breach of a warranty renders the policy void and of no effect. Any breach regardles of any connection between the breach and the loss renders the policy void from the DTE of the breach. This is because any declaration on the proposal form forms the basis of the contract. By signing the form, the insured has vouched for the correctness of the answers. Hence any breach allows the insure to repudiate the claim.
Warranty may be Continues or Promissory or Non Promissory. A Promissory warrant denotes that the insured is required to comply with the conditions throughout the currencyvof the contract. Butcin Non- Promissory Warranty, the correctness of the statement is only at the time of making that statement and does not apply to any future condition.
A breach of a warranty renders the policy void and of no effect. Any breach regardles of any connection between the breach and the loss renders the policy void from the DTE of the breach. This is because any declaration on the proposal form forms the basis of the contract. By signing the form, the insured has vouched for the correctness of the answers. Hence any breach allows the insure to repudiate the claim.
