Article 3. Implied Warranties Peculiar To Marine Insurance of California Insurance Code >> Division 2. >> Part 1. >> Chapter 1. >> Article 3.

In every marine insurance upon a ship or involving transportation by ship, a warranty is implied that the ship is seaworthy.

A ship is seaworthy when reasonably fit to perform the services and encounter the ordinary perils of the voyage contemplated by the parties to the policy.

An implied warranty of seaworthiness is complied with if the ship is seaworthy at the time of the commencement of the risk, except in the following cases:
  (a) When the insurance is made for a specified length of time, the implied warranty is not complied with unless the ship is seaworthy at the commencement of every voyage it undertakes during that time.
  (b) When the insurance is upon the cargo and, by the terms of the policy, description of the voyage, or established custom of the trade, the cargo is to be transshipped at an intermediate port, the implied warranty is not complied with unless each vessel upon which the cargo is shipped or transshipped is seaworthy at the commencement of its particular voyage.

A warranty of seaworthiness extends not only to the condition of the structure of the ship itself, but also requires that it be properly laden and provided with:
  (a) A competent master.
  (b) A sufficient number of competent officers and seamen.
  (c) The requisite appurtenances and equipments.
  (d) Other necessary or proper stores and implements for the voyage.

Where any portion of the voyage contemplated by a policy differs from other portions in respect to the things requisite to make the ship seaworthy therefor, a warranty of seaworthiness is complied with if, at the commencement of each portion, the ship is seaworthy with reference to that portion.

When a ship becomes unseaworthy during the voyage, an unreasonable delay in repairing the defect exonerates the insurer from liability on any loss arising from the defect.

A ship may be seaworthy for the purpose of insurance upon itself and, at the same time, unseaworthy for the purpose of insurance upon the cargo because of unfitness to receive the cargo.

Where the nationality or neutrality of a ship or cargo is expressly warranted, it is implied that:
  (a) The ship will carry the requisite documents to show such nationality or neutrality.
  (b) It will not carry any documents which cast reasonable suspicion thereon.