Economics 3366A/B Study Guide - Quiz Guide: South African Contract Law, New India Assurance, Cgu Plc
22 Sep 2020
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This is sometimes referred to as a promissory" or continuing" warranty. Normal rules of contractual interpretation apply to warranties. Hussain v brown [1996] 1 lloyd"s rep 627 (ca), gives rise to the question as to whether the warranty was factual or whether there was a continuing obligation. The insured gave the information required and during the course of the policy lifetime there was a problem when they came to claim on the insurance. The court said the continuing warranty is quite draconian. If the underwriters wanted this protection it had to be clear to the extent that there is no question about it. Ansari v new india assurance ltd. [2009] ewca civ 93; [2009] lloyd"s rep ir 562, a couple of factors which hugely increased the risk during the policy. The policy agreement itself had an exclusion clause which would apply when the insured failed to notify the insurer of an increase in risk.
