{"id":10487,"date":"2022-03-07T14:17:54","date_gmt":"2022-03-07T13:17:54","guid":{"rendered":"https:\/\/p-i7kp07.project.space\/?p=10464"},"modified":"2022-07-11T09:42:16","modified_gmt":"2022-07-11T08:42:16","slug":"ukraine-crisis-cargo-insurance-and-political-risks","status":"publish","type":"post","link":"https:\/\/trustrc.com\/en\/ukraine-crisis-cargo-insurance-and-political-risks\/","title":{"rendered":"Ukraine crisis – Cargo insurance and political risks"},"content":{"rendered":"

Trading companies and manufacturers of goods have their deliveries insured in a global transport insurance policy based on turnover. The scope of coverage is usually “all risks” according to the Institute Cargo Clauses or similar wordings.<\/span><\/h4>\n

The current situation in Ukraine is classified as war since Russia has occupied Ukrainian territory with a regular army.<\/span><\/h4>\n

Insurance in case of war and strike<\/strong><\/span><\/h4>\n

Basically, the dangers of war and strike are excluded in the “all risks” coverage, but they are usually included in the individual policies with additional clauses.<\/strong> This extension of cover for these political risks follows the definitions from the insurance conditions of the English insurance market, like the general conditions.<\/span><\/h4>\n

The insured risks of “war” include for instance war, civil war, revolution, rebellion, insurrection, civil strife and confiscation resulting therefrom. The insured perils \u201cstrike\u201d include damage to the transported goods caused by strikers, locked-out workers or persons taking part in industrial disturbances, riots or civil commotion, terrorists or persons acting with political motives. Material damage to the goods that occurs directly as a result of the above-mentioned risks is insured.<\/span><\/h4>\n

The additional clauses mentioned can be used to cover the risks of \u201cwar\u201d in sea transport and international air freight (\u201cairborne\u201d and \u201cseaborne\u201d), but never in the case of land transport, <\/strong>due to the accumulation risk for the insurer.<\/span><\/h4>\n

The risks of strikes are insured by the relevant clause for carriage by any means of transport, including land.<\/span><\/h4>\n

Termination by insurer possible<\/strong><\/span><\/h4>\n

However, insurers have a special right of termination in the policies for political risks.<\/strong> According to this, the insurer can terminate the contract with a notice period of 48 hours or 7 days depending on the applicable clause in the current contract. However, for deliveries that began prior to the effective date of termination, political risk coverage will remain in place for the entire shipment.<\/strong><\/span><\/h4>\n

To date, cancellations of political risks have been declared as follows:<\/span><\/h4>\n