WAR RISK.

Manawatu Standard, Volume LVIII, Issue 53, 31 January 1938, Page 8

WAR RISK.

“WATERBORNE” AGREEMENT. Marine underwriters, after a prolonged study of the situation, have decided that under modern conditions of warfare such widespread destruction of property is possible that the accumulated cargo values at certain ports would create liabilities which even the whole marine insurance market might well be unable to meet. In this connection it will he recalled that non-marine underwriters have already ceased to grant war risk cover on shore and marine underwriters now' propose to limit the cover granted under a marine contract to the period from the time the interest is loaded on board the overseas vessel until such interest is discharged overside from the overseas vessel or until the expiry of 15 days from midnight of the day on which such vessel is safely anchored or moored at the final port of discharge, whichever shall first occur. The agreement is to he made applicable to sailings on and after February 1, 1938, and in order to bring the agreement into force the necessary cancellation notice is being given under all insurance contracts,_ it being understood, however, that in respect of sales contracts entered into prior to December 23. 1937, permission maybe given in such circumstances to grant the existing war risk cover for sailings up to and including March 31, 1938.

The agreement come to by marine ■underwriters will apply to original and reinsurance contracts irrespective of nationality. The clauses to be embodied in contracts giving effect to the above-men-tioned limitation of cover are set out below:

1. Warranted free of capture, seizure, arrest, restraint or detainment, and the consequences thereof or of any attempt thereat; also, from the consequences of hostilities or warlike operations, whether there be a declaration of war or not, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, or piracy. 2. Warranted free of loss of damage caused by strikers, locked-out workmen, of persons taking part in labour disturbances, riots or civil commotions. 3. Should the risks excluded by Clause 1 (F,, C. and S clause) be reinstated in this policy bv deletion of the said clause, or should the risks or any of them mentioned in the same clause or the risks of mineß, torpedoes, bombs or other engines of war be insured under this policy, then notwithstanding anything in this policy to the contrary: (a) The insurance against the said risks shall not attach to the interest hereby insured or to any part thereof; (i) "prior to being on board the overseas vessel; (ii) after being discharged overside from an overseas vessel at the final port of discharge- or after expiry of 15 days from midnight of the day on which the overseas _ vessel is safely anchored or moored at the final port of discharge, whichever shall first occur; (iii) at a port or place of transhipment to another overseas vessel after the expiry of a period of 15 days in all (counting from midnight of the day on which the overseas vessel entering with the interest is safelv anchored or moored) until the interest is on board the oncarrying overseas vessel. In the event of the exercise of any liberty granted to the shipowner or charterer under the contract of affreightment whereby such contract is terminated at a port or place other than the destination named therein such port or place shall be deemed file final port of discharge ns above, (b) This policv is warranted free of any claim based upon loss of, or frutstration of, the insured voyage or adventure caused by arrests, restraints or detainments of kings, princes, peonies, usurpers or persons attempting to usurp power. If anything contained in this policy shall be inconsistent with clauses 3 (a) and 3 (b) or either of them, it shall to the extent of such inconsistency be mill' and void.