Warranty

(a) A promissory undertaking by the insured that some particular thing shall or shall not be done, or some condition shall be fulfilled, or that a particular state of facts is affirmed or negatived (Marine Insurance Act 1906).

(b) A policy term that must be complied with strictly and literally if insurance cover is to be maintained; a breach will normally entitle the insurer to avoid the contract (but not for breaches that are unconnected with the particular loss under a personal non-marine policy — ABI statement of general insurance practice). See also Promissory warranty.

Warsaw Convention 1929

An international agreement, binding on countries that are signatories to it, creating automatic liability to passengers and cargo travelling in aircraft, subject to certain minimum limits. See also Hague Protocol 1955, which updated it.

Waterborne agreement

An agreement by marine insurers not to insure goods against war risks on land.

Wear and tear

The value of depreciation through usage that is deducted from an indemnity claims settlement unless new for old or reinstatement conditions apply. See also Betterment.

Weather insurance

A policy usually effected in case of cancellation of a specific event. The scope of cover varies. See also Pluvius insurance.

Windscreen breakage

A section of cover provided in a motor policy that provides for windscreen repair or replacement, payment for which will not prejudice the no-claim discount. The cover is often subject to an excess that is less than the general policy excess.

Without prejudice

A term appearing in correspondence relating to a legal dispute, designed to allow free negotiation by virtue of the very limited circumstances in which such correspondence may be produced as evidence in a court of law. Its use is no longer automatic in claims negotiations because of criticisms of the potential for its misuse by insurers.

Write-off

A term (usually used in relation to a motor vehicle) that denotes that property has been damaged beyond economic repair. In some motor policies the point at which a write-off occurs (ratio of repair cost to value) is defined.