In order to make the underwriter liable under a contract of marine insurance or cargo insurance , there are certain preliminary essential conditions which must be complied with though not expressed in clear ords . These terms are implied warranties basically these are two :-
A) ----- Implied warranties of seaworthiness :-
It implies that the ship , by which the particular kind of cargo is transported , is fit to carry the particular cargo . For instance , if is frozen meat , then the refrigerating machinery, holds etc. must be in proper order . Actually for a proper cargo all supporting machinery and others have to be in a good condition and seaworthy , but there are is not implied warranty that the goods are seaworthy .
b) ----- Marin adventure in all respect to be lawful activity :-
It implies that an insurance of unenforceable if it is respect to a marine adventure which has declared illegal according to the law of land where the contract was effected .
If any policy has been taken for in any of the cargoes forbidden to be exported from India , the insurance companies are at liberty to avoid the contract on the basis of breach of implied warranty of legality through the trading in the countries of Africa for these items may be legal .
