"WAR RISK CLAUSE" IN MARINE INSURANCE
WAR RISK CLAUSE :- Marine insurance act 1963 section 2(e) defines war peril as maritime peril. A charter party may include a war risk clause under which a vessel may be prohibited to be used in war zones or to carry goods which will expose her to the risk of capture.
War risk cover is normally excluded from the H&M cover, so it is necessary for the assured to buy cover separately against war risk. Similarly Institute cargo clauses A,B,C also exclude the cover against war and strike.
War risk clause covers the following perils:-
1) War or war like situations, including civil war, use of arms in course of military exercise in peace time.
2) Capture at sea, confiscation and other similar intervention by a foreign state power.
3) Riots, sabotage, act of terrorism or other social, religious or politically motivated use of violence or threat.
4) Piracy and mutiny.
However insurance does not cover:-
1) Insolvency
2) Damage due to any nuclear weapon, chemical, biological or electromagnetic weapon.
For the cargo insurance cargo owners buy cover against war risk and strike. This covers the loss occurred during above. But the coverage provided by war risk clause do not operate during the entire course of transit. Marine underwriters only offer cover for war risk whilst waterborne. There is no war risk cover for any of the goods up to the time they are loaded on to the ship and the cover terminates immediately after the goods are discharged at the destination port. Marine war policies also automatically terminates following outbreak of war between major power.
A 12 month war policy gives cover for vessels whilst trading worldwide but outside certain excluded areas which are deemed areas of increased risk. Cover can be obtained for these areas but underwriters need to be informed and underwriters can ask for additional premium for the call which is set no earlier than 48 hrs before entry. Either party can give 7 days notice of cancellation at any time during the policy period.
War risk cover is normally excluded from the H&M cover, so it is necessary for the assured to buy cover separately against war risk. Similarly Institute cargo clauses A,B,C also exclude the cover against war and strike.
War risk clause covers the following perils:-
1) War or war like situations, including civil war, use of arms in course of military exercise in peace time.
2) Capture at sea, confiscation and other similar intervention by a foreign state power.
3) Riots, sabotage, act of terrorism or other social, religious or politically motivated use of violence or threat.
4) Piracy and mutiny.
However insurance does not cover:-
1) Insolvency
2) Damage due to any nuclear weapon, chemical, biological or electromagnetic weapon.
For the cargo insurance cargo owners buy cover against war risk and strike. This covers the loss occurred during above. But the coverage provided by war risk clause do not operate during the entire course of transit. Marine underwriters only offer cover for war risk whilst waterborne. There is no war risk cover for any of the goods up to the time they are loaded on to the ship and the cover terminates immediately after the goods are discharged at the destination port. Marine war policies also automatically terminates following outbreak of war between major power.
A 12 month war policy gives cover for vessels whilst trading worldwide but outside certain excluded areas which are deemed areas of increased risk. Cover can be obtained for these areas but underwriters need to be informed and underwriters can ask for additional premium for the call which is set no earlier than 48 hrs before entry. Either party can give 7 days notice of cancellation at any time during the policy period.
Comments