Marine Insurance Act, 1963
38. Warranty of neutrality
(1) Where insurable property,
whether ship or goods, is expressly warranted neutral, there is an implied
condition that the property shall have a neutral character at the commencement
of the risk, and that , so far as the assured can control the matter, its
neutral character shall be preserved during the risk.
(2) Where a ship is
expressly warranted "neutral", there is also an implied condition
that, so far as the assured can control the matter she shall be properly
documented, that is to say, that she shall carry the necessary papers to
establish her neutrality, and that she shall not falsify or suppress her
papers, or use simulated papers If any loss occurs through breach of this
condition, the insurer may avoid the contract.