War risk covers for damages suffered by shipowners due to acts of war.
War risk insurance generally ahs two components:
War Risk Hull, which covers the vessel herself and is calculated based on the value of the vessel;
War Risk Liability (P&I), which covers people and items inside the vessel and is calculated based on the indemnity amount.
The Basic annual premium charged is supplemented by additional premiums for any voyages made to the excluded areas.
The joint War Committee (JWC), following the advice of an independent committee, issues and periodically reviews a recommended list of such areas.
This insurance covers loss of or damage to the Vessel caused by:
- war, civil war revolution rebellion insurrection, or civil strike arising therefrom, or any hostile act by or against a belligerent power
- capture seizure arrest restraint or detainment, and the conswquences thereof or any attempt thereat
- derelict mines torpedoes bombs or other derelict weapons of war
- strikers, locked-out workmen, or persons taking aprt in labour disturbances, riots or civil commotions
- any terrorist or any person acting maliciously or from a political motive
- confiscation or expropriation
