IPT03750 | Overview and the law: how to determine whether there is a contract of insurance: manufacturers' warranties

A person is provided with an undertaking by the vendor of goods that as long as they are used for the purpose intended, they will continue to work for a certain period of time. If they fail during this period, the goods will be repaired or replaced by the vendor. There is no premium and the purchaser pays only for the goods. If the goods fail to work, the purchaser has no contract of insurance to claim against, only the warranty given above. Manufacturers’ warranties are not contracts of insurance.