Warranties and perils of the sea

The decision of the Singapore Court of Appeal in Marina Offshore Pte Ltd v China Insurance Co (Singapore) Pte Ltd [2006] SGCA 28; [2007] Lloyd’s Rep (forthcoming) raised a number of important marine insurance issues. In particular, the Court considered the complex relationship between perils of the sea and unseaworthiness. The Court also discussed the distinction between a voyage policy and a time policy. As readers will be aware, there is an implied warranty of seaworthiness in a voyage policy (s39(1) of the Marine Insurance Act 1906), but as far as a time policy is concened there is simply a bar on recovery where the loss is due to unseaworthiness of which the assured was aware when the vessel put to sea (s39(5)) .