Grounds for rescission

GROUNDS
Concealment

Misrepresentation Breach of warranty, express or

implied
Other grounds - Section 64-65

Warranty
Either express or implied

May relate to the past, present or

future

Implied Warranties in Marine Insurance

Seaworthiness - 113 Nationality or neutrality 120

Improper deviation -121 Illegal ventures

Seaworthiness
Section

114 - a ship is seaworthy if reasonable fit to perform the service, and to encounter the ordinary perils of the voyage contemplated by the parties to the policy

Seaworthiness
Section 116 - extends not only to the

seaworthiness of the ship itself but requires that it be properly laden, provided with competent master, sufficient number of competent officers and seamen, requisite appurtenances and equipment and other implements for the voyage

Improper Deviation
Section 123 - deviation is a departure

from the course of the voyage insured or unreasonable delay in pursuing the voyage or the commencement of an entirely different voyage

Proper Deviation, 124

caused by circumstances outside the

control of the master or owner

when necessary to comply with a

warranty or to avoid peril

Proper Deviation, 124

when made in good faith upon

reasonable grounds to avoid a peril

in good faith to save human life or

to relieve another vessel

Nationality
Section 120 - where the nationality or

neutrality of the ship is expressly warranted, it is impliedly warrantied that the ship will carry the requisite documents to show such nationality or neutrality and it will not carry any document which will cast suspicion thereon.

Other Ground for Rescission in non life insurance

non- payment of premium

conviction of a crime arising out of acts increasing the hazard insured against
discovery of fraud / material misrepresentation

Other Ground for Rescission in non life insurance

discovery of willful or reckless acts or omissions increasing the hazard insured against physical changes in the property becoming uninsurable

determination by Insurance Commissioner that continuation of the policy would violate or would place the insurer in violation of the Insurance Code

Notice of Cancellation
In writing
Mailed or delivered to named

insured at address shown in the policy Shall state grounds relied on upon written request, insurer will furnish fact on which cancellation is based

Rescission must be exercised

Before the commencement of any action on

the contract
In case of motor vehicle liability insurance -

notice of cancellation must be sent to the land transportation owner/operator and the LTO at least 15 days before date of effectivity