Marine insurance

Pursuant to s 34(3) of the Marine Insurance Act 1906, a breach of warranty might be waived by the insurer. Unlike in the case of non-disclosure or misrepresentation, where the insurer had a choice whether to avoid or affirm a policy, a breach of warranty operated automatically to discharge the policy.

Any waiver of such a breach therefore required an estoppel. Accordingly, the claimant had to establish (a) representation (whether by words or conduct) to the effect that the first defendant was not relying on the breach of warranty defence, and (b) such reliance by the claimant on that representation as would render it unfair or unconscionable for the first defendant to be permitted to go back on it later.