War insurance (cargo)

Due to recent political events in Ukraine, war insurance of cargo shipped via the Black Sea has become especially topical, namely, for large-scale imports of grain cargo, coal, oil and other goods shipped from the Russian Federation ports on the Black Sea.

In international practice standard conditions of war risks insurance include special clauses: Institute War Clauses (Cargo) 1982 edition (CL255) or 2009 edition (CL385). Such clauses are additionally applied to basic insurance conditions and allow to include insurance coverage of loss or damage of cargo should it result from the following events:

–  wars, civil wars, revolutions, uprisings, rebellions;

– capture, confiscation, arrest, ban on transportation or detention (excluding acts of piracy);

– crashes against stray shells, torpedoes, bombs or other abandoned military weapons.

It is important that such clauses do not cover military risks on land. War insurance comes into effect from the moment of cargo loading on the sea vessel and until discharge.

By applying increased insurance premium rates Russian insurance market allows to insure the cargoes shipped from the ports on the Black Sea under Institute War Clauses (Cargo).

Polaris Insurance Consultants are ready to help their clients with military risks insurance of cargoes shipped by sea on the Russian insurance market. Feel free to contact us by e-mail: polaris@polaris.broker