PART 3

Warranties and other terms

Breach of warranty
10
1
Any rule of law that breach of a warranty (express or implied) in a contract of insurance results in the discharge of the insurer’s liability under the contract is abolished.
2
An insurer has no liability under a contract of insurance in respect of any loss occurring, or attributable to something happening, after a warranty (express or implied) in the contract has been breached but before the breach has been remedied.
3
But subsection (2) does not apply if—
a
because of a change of circumstances, the warranty ceases to be applicable to the circumstances of the contract,
b
compliance with the warranty is rendered unlawful by any subsequent law, or
c
the insurer waives the breach of warranty.
4
Subsection (2) does not affect the liability of the insurer in respect of losses occurring, or attributable to something happening—
a
before the breach of warranty, or
b
if the breach can be remedied, after it has been remedied.
5
For the purposes of this section, a breach of warranty is to be taken as remedied—
a
in a case falling within subsection (6), if the risk to which the warranty relates later becomes essentially the same as that originally contemplated by the parties,
b
in any other case, if the insured ceases to be in breach of the warranty.
6
A case falls within this subsection if—
a
the warranty in question requires that by an ascertainable time something is to be done (or not done), or a condition is to be fulfilled, or something is (or is not) to be the case, and
b
that requirement is not complied with.
7
In the Marine Insurance Act 1906—
a
in section 33 (nature of warranty), in subsection (3), the second sentence is omitted,
b
section 34 (when breach of warranty excused) is omitted.