War risk insurance( Applicability. Features. Scope of cover- Detainment)

Introduction

Marine war risk insurance is a type of insurance that covers the loss or damage to ships and their cargo caused by war, piracy, terrorism, and other related perils. It is an important type of insurance for any company that ships goods by sea, as it can help to protect the company from the financial losses that can be caused by these events.

Applicability

Marine war risk insurance is applicable to all types of ships, including cargo ships, tankers, passenger ships, and fishing vessels. It can also be applied to offshore installations, such as oil rigs and platforms.

Features

Marine war risk insurance is typically provided by specialist insurance companies. The cover provided by marine war risk insurance policies can vary, but it typically includes the following:

• Cover for loss or damage to ships caused by war, piracy, terrorism, and other related perils.
• Cover for loss or damage to cargo caused by war, piracy, terrorism, and other related perils.
• Cover for the cost of salvage and general average.
• Cover for the cost of repatriation of crew.

Scope of cover: Detainment

Detainment is the act of seizing or arresting a ship. Detainment can be caused by a variety of factors, including war, piracy, and sanctions. Marine war risk insurance policies typically cover the cost of detainment, including the cost of crew wages, provisions, and fuel.

Benefits

There are a number of benefits to having marine war risk insurance, including:

• Financial protection: Marine war risk insurance can help to protect your company from the financial losses that can be caused by war, piracy, terrorism, and other related perils.
• Peace of mind: Marine war risk insurance can give you peace of mind knowing that your ships and cargo are insured against these events.
• Compliance with regulations: In some cases, marine war risk insurance may be required by law or regulation.

Cost

The cost of marine war risk insurance will vary depending on a number of factors, including the type of ship, the voyage route, and the current level of risk. However, the cost of marine war risk insurance is typically a small percentage of the value of the ship and cargo.

Conclusion

Marine war risk insurance is an important type of insurance for any company that ships goods by sea. It can help to protect your company from the financial losses that can be caused by war, piracy, terrorism, and other related perils. If you are considering purchasing marine war risk insurance, you should speak to a specialist insurance broker to get a quote and to discuss your specific needs.