War Risk Legal aspects

Transcription

1 Slide 1

2 1758 Slide 2

3 WAR & PEACE Slide 3. I established that the occurrence of war or peace does not affect insurance and does not lead to any premium increase or decrease.

4 PRINTED (STANDARD) FORMS Marseilles Bordeaux Antwerpen Hamburg Nantes Genoa Slide 4 Ancona

5 MARSEILLES FORM Slide 5

6 MARSEILLES FORM Slide 6 «All those who write this policy will bear the same risks as the Insured whether from divine or human origin, caused by friends or foes, known or unknown..»

7 PERILS Civil war Revolution Sabotage Rebellion WAR Civil commotion Strike Riot Insurrection Slide 7 Civil strife Confiscation Terrorism Malicious damage Deprivation

8 19TH CENTURY London Market S. & G. form French Market 1807 Code of Commerce Slide Free of Capture and Seizure clause 1872 Normal conditions vs Exceptional

9 MARINE / WAR Marine War Marine War Slide 9 H & M P & I

10 Problem Extension X SRCC WAR Extension X Slide 10 Waterborne agreement Spanish War 1938

11 The Waterborne Agreement 1937: During Spanish Civil War Lloyd s Underwriters followed by many others signed the Waterborne Agreement that bound them to exclude from their insurance contracts war risk during transportation or storage on land before or after sea or air transportation Slide 11 Reason: Accumulation impossible to manage

12 HULLS-TIME 1 PERILS 1.1 War, civil war, revolution, rebellion insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power Slide Capture seizure arrest restraint or detainment, and the consequences thereof or any attempt hereat....

13 TRADING WARRANTIES VESSELS ENGAGED IN «WORLD-WIDE» TRADE Slide 13 1.This coverage shall extend world-wide, but in the event of a vessel or craft insured hereunder sailing for, deviating towards, or being within in the Territorial Waters of any of the Countries or places, described in the Current Exclusions as set out below (including any port area that at the date of this notice constitutes part of such a country or place however it may hereafter be described) additional premium shall be paid at the discretion of insurers

14 Swiss Re Marine War SRCC Schedule no 14, effective Dear All, Please find enclosed the latest WSRCC schedule for your perusal. The schedule is updated on a quarterly basis and parameters used to adjust it stem from internal as well as external sources. The only change this quarter is the split of Congo (Republic of, Brazzaville) and Congo (Democratic Republic of, Kinshasa) to give greater clarity. FOR INTERNAL USE ONLY: Please bear in mind that Swiss Re has a list of excluded countries where it is prohibited for Swiss Re to accept any business. This restriction may clearly not necessarily apply to ceding companies and for this reason, countries that are subject to war and strikes restrictions may still appear on the schedule for guidance purposes to ceding companies. This is the case with two countries excluded by Swiss Re being Somalia and Sudan. Slide 14 The complete list of the five excluded countries is: Burma (Myanmar), Iran (newly added), Democratic Republic of North Korea (DPNK), Somalia and Sudan. Enquiries for known business from ceding companies domiciled in these countries or for marine shipments with final destination within these countries cannot be accepted. We are at your disposal should you have any further queries in this matter. A copy can also be found on the Marine Knowledge Network (MKN

15 Slide 15

16 TERMINATION Slide This insurance may be cancelled by either the Underwriters or the Assured giving 7 days notice. The Underwriters agree however to reinstate this insurance subject to agreement between the Underwriters and the Assured prior to the expiry of such notice of cancellation as to a new rate of premium and/or conditions and/or warranties.

17 BLOCKING AND TRAPPING Slide 17 It is hereby agreed the Inability of the Vessel to sail from any port, canal, waterway or other place to the high seas for a continuous period of 12 months as a result of the closure of the connecting channel to all vessels of such size or draft is within the term restraint appearing in Clause 3 of the Institute War and Strike Clauses Hulls provide that such closure has arisen through the blockage of the waterway by a warlike act, or act of national defence.

18 NATIONALIZATION EXTENSION Should there be an act of nationalization during the currency of this policy for which the compensation provided is less than 100% of the value insured hereunder. Underwriters shall indemnify the Assured for 100% of the actual loss sustained. Slide 18

19 PROTECTION AND INDEMNITY It is further agreed that : 1. The insurance is also to cover such Protection and Indemnity risks which are excluded from the marine insurance by reason of the operation of the F.C. & S. (and S.R. & C.C. & M.D. etc. and Sabotage and Vandalism, where applicable) clause or clauses in the rules of the Club covering Protection & Indemnity risks or in the policy of the insurance covering such risks and current at the time of happening of the accident giving rise to the claim. Slide 19

20 PROTECTION AND INDEMNITY The cover afforded under this Section shall also extend to : The actual or attempted removal, raising, destruction, lighting or marking of the insured vessel and any cargo thereof, from any place owned, leased or occupied by the Assured and arising directly or indirectly out of any of the risks specified in Rule 14 (Liability excluded for War Risks) of the Rules of the said Association. Slide 20

21 PROTECTION AND INDEMNITY (A) Crew War Liabilities (Mastery, Officers, Seamen, and other Members of the Crew) (B) War Liabilities in respect of other persons employed in any capacity whatsoever by the Assured or others in, on or about or in connection with the insured vessel or her cargo, materials or repairs. Slide 21

22 CLAUSE 67 notwithstanding the foregoing Underwriters shall not be liable for the Assured s assumed or contractual obligation to the crew of the insured vessel but shall indemnify the Assured in respect of his obligations to repatriate members of the crew. Underwriters liability under this clause shall be limited to the sum of $ any one occurrence (including costs in addition) Slide 22

23 PROTECTION AND INDEMNITY 2. The limits referred to in Clause 1 above are : (a) Except in respect of such loss, liability or expenses as is mentioned in paragraph (b) below, either the insured value of the insured vessel in respect of which the claim arose (being the agreed amount payable under the insurance (s) for War etc. or USD whichever is the greater. Slide 23

24 PROTECTION AND INDEMNITY 7. This Protection & Indemnity Insurance shall terminate automatically at the same time as the Hull Insurance against War Risks and upon the terms and conditions provided for in the Automatic Termination Clauses of the Hull War Risk Policy. Slide 24

25 Claim Limbourg Slide 25

26 LIMBOURG Vessel Insured Value (War) USD Salvage award Insured Limit (War) USD Loss of Hire Insured Limit (War) USD Liabilities Slide 26 Insured Limit (War) Insured Limit (P&I) USD USD excess of

27 CLAIM Insured value H & M 70% CTL if > 80 % USD USD USD Slide 27

28 CLAIM Insured value H & M 70% CTL if > 80 % USD USD USD Repair costs USD Slide 28

29 LIMBOURG LOSS (USD) C. Total Loss Initial Hull & Mach. P & I Loss Of Hire Salvage Miscellaneous Slide 29 TOTAL

30 COMPROMISE 1 - Unrepaired damage claim 2 - Salvage award and all P&I claims for Underwriters account 3 - Owners sell the Limburg «as is where is» with profit split arrangement with Underwriters Slide 30

31 LIMBOURG LOSS (USD) Settlement P & I Salvage Miscellaneous TOTAL Slide 31.

32 LIMBOURG LOSS (USD) Settlement Final P & I Salvage Miscellaneous TOTAL Slide 32 Profit split Net