2023 SCeJ 322, 2023 SupremeCourtOnline 433603, (2023-2)210 PLR 703 (SC) (SN)
insurance – Marine Insurance Act, 1963 – Rules for Building and Classing – Classification Certificate – Issue – Non-reporting of the dam-age/defects to the Classification Society before issue of the certificate and the same rendering the Class Certificate invalid though issued earlier is the issue and in that circumstance whether the owner is to inform this aspect or as to whether the verification by the insurer is warranted.
(Insurance – Marine Insurance Act 1963, Sections 35, 37, 41(5) and 55 – Relating to warranties, if the requirement is not complied with, then the insurer is discharged from liability as from the date of breach of warranty but without prejudice to any liability incurred before that date – Mere knowledge on the part of the insurer that there was a breach of warranty would not amount to a waiver in the absence of an express representation to that effect – In that background, in a time policy, there is no implied warranty that the ship shall be seaworthy at any stage but where with the privity of the assured, the ship is sent to sea in an unseaworthy state, the insurer is not liable for any loss attributable to un-seaworthiness – The assured is expected to bring to the notice of the Classification Society the shortcomings or the defects if any, before the issue of such Class Certificate since the insurance coverage to be provided by the insurer is based on such Class Certificate which is assumed to have been issued by the Classification Society after keeping in view all aspects including the defects if any brought to their notice – It is in that light the provisions extracted above becomes relevant as to the circum-stance under which the Class will be suspended and the Certificate of Classification will become invalid in the circumstances stated therein, which also refers to such suspension and invalidation, if any dam-age, failure or deterioration repair has not been completed as recommended.