"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...