war risk insurance
(insurance) Insurance coverage against war risks as outlined in detail in some dozen rather specific paragraphs of an insurance policy. The policy conditions must be read for complete understanding. In general, they cover risks of capture and seizure, destruction or damage by warlike operations in prosecution of hostilities, civil wars and insurrections or in the application of sanctions under international agreements. Delay or loss of market is excluded. Loss or expense arising from detainments, nationalization of the government to or from which the goods are insured or seizure under quarantine or customs regulations is also excluded.
War risk insurance generally attaches as goods are first loaded on board a vessel at the port of shipment, and it ceases to attach as goods are landed at the intended port of discharge or on expiry of 15 days from arrival of the overseas vessel whichever first occurs. It includes transshipment and intermediate overland transit to an on-carrying overseas vessel, if any, but in no case for more than 15 days counting from midnight of the day of arrival of the overseas vessel at the intended port of discharge. If in transshipment, the 15-day period is exceeded, the insurance re-attaches as the interest is loaded on the on-carrying vessel. In case the voyage is terminated and the goods are discharged at a port or place other than the original port of discharge, such port or place shall be deemed the intended port of discharge.
The war risk policy is subject to 48 hours cancellation by either party. However, it cannot be cancelled on shipments upon which insurance has already attached. Since the cancellation provision is used at times for changing the conditions of insurance the current coverage should be studied for exact understanding of the war risk policy.
War risk insurance is routinely obtained for protection against mines and other implements of war from former wars.