What is the effect of the admission of seaworthiness by the insurer?


If the policy provides that the seaworthiness of the vessel as between insured and insurer is admitted, the issue of seaworthiness cannot be raised by the insurer without showing concealment or misrepresentation by the insured. (Phil. American General Insurance Co. v. CA, G.R. No. 116940, June 11, 1997)


It may mean:

1. That the warranty of seaworthiness is to be taken as fulfilled; or

2. That the risk of unseaworthiness is assumed by the insurer. (Philippine American General Insurance Co., Inc. v CA, GR No. 116940. June 11, 1997)