Seaworthiness admitted provision. This applies to cargo insurance.
The implied warranty under a contract of marine insurance that the vessel will be seaworthy at the commencement of the voyage, or, if the voyage is carried out in stages, at the commencement of each stage, applies only to voyage policies. In other words, the ship need only be seaworthy for the purpose of the particular voyage insured. Cargo policies are usually “voyage policies”. Section 40 (2) of the Marine Insurance Act 1906 states that in a voyage policy on goods there is an implied warranty that the ship is not only seaworthy but also fit to carry the cargo to the destination.
Obviously, it is impracticable for cargo owners under a voyage policy to warrant the seaworthiness of the ship. Underwriters therefore included the so called “seaworthiness clause” in cargo policies, by which, as between the assured and the underwriters, the seaworthiness of the vessel is admitted. This clause did not affect the obligation of the shipowner regarding seaworthiness under his contract of carriage.
After 1982, the Institute Cargo Clauses provide that the underwriters waive any breach of the seaworthiness and fitness warranty unless the cargo assured or their servants know about the ship’s unseasworthiness or unfitness.