Business Insurance Why Creation of warrant

[Mataracy]

In insurance there are several ways of creating a warranty in insurance contract viz: it may be a term of the policy itself such as where the term uses the word "warranty" or the phrase " it is hereby warranted ", it .may be written on the margin of the policy; incorporated into the policy by reference to the proposal form; or even by the use of the words " condition precedent ". If the later is adopted l, although inherent with problems, it follows that a breach of a condition precedent to the validity of the policy has the same legal consequence as a breach of a warranty.
Since there are no precise form of words or methods to create a warranty, yo avoid the cumbersome nature of severely warranting each and every industrial fact, insurers devised the use of the " basis of the contract". A typical example is ' I agree that this proposal and declaration shall be the basis of the contract between the SINCERE Insurance Company and me ". It can also be worded thus " I, the policy- holders declare that my answer to the foregoing question are correct and true and binding on me and firms the basis of contract for the proposed insurance.
This are the reason why warrant needed to be create during the contract between the insured and the insurance company.

 

[btaliat]

Creation of warranty is just a means of validating the agreement between the insurer and the insurance company. There is need to for this agreement to validate for future purpose and for the sake of clarity. If there is any breach between the insurer and the insurance company, it can be easily resolved.

 

[Mandy96]

Well, there is surely so much to learn about insurance. To be honest, this is my first time of hearing of warrant in insurance. I mean it feels like insurance has got everything covered but I would like to ask a question. Does all insurance companies offers this “warrant”. Especially the ones in Nigeria

 

[Jamoflondon]

I really don’t know if this is real. Because warrant sounds to me like an assurance given for some period of time when a product is purchased. Within this period, you have the right to return it if you are not satisfied or the product got damaged, or even maybe it didn’t meet your expectations

 

[dagm]

Effectively, there's certainly a lot to find out about insurance coverage. To become truthful, this is actually my very first time of listening to of require in insurance coverage. I imply it seems like insurance coverage has actually obtained whatever dealt with I truly have no idea if this is actually genuine