War perils

Loss of hire insurance for war perils will cover loss of income resulting from damage to the vessel caused by a war peril as defined in Cl. 2-9.  A war peril insurance based on the Plan is a named peril insurance as an exception to the general all risk principle adopted for marine peril insurance under Cl. 2-8 (see 2.2.1above). Similarly, under English conditions the war peril insurance is also a named peril insurance.

The war peril concept is, in practical terms, almost identical under the Plan and the English systems with one important difference: piracy and mutiny are marine perils under the English system whilst they are war perils under the Plan Cl. 2-9, sub-clause 1 (d).  For the assured, this difference will be irrelevant as long as there is a consistent choice of conditions. However, the assured may either have an overlap or a gap in cover if the Plan and English conditions are mixed. There will be a gap in cover if the Plan marine and English war peril insurance is taken out, whilst there will be an overlap of cover in the reverse situation. It is, of course, possible to fill the gap or eliminate the overlap by appropriate clauses in the policy. For further discussion on the war peril concept, see the Commentary to Cl. 2-9 and Brækhus and Rein: Kaskoboken, pages 55 et seq.

The war perils insurance covers, inter alia, damage to the vessel caused by war or war-like conditions; the use of weapons etc. in the course of military exercises in peacetime, or in acts guarding against the infringement of neutrality, as well as riots strikes, lockouts, sabotage, acts of terrorists etc.

Where a certain peril results in a series of events or consequences, which in and of themselves may constitute insured perils, it will be the original peril which will be determinative in classifying the insured event. A classic example is the "Torrey Canyon" casualty where the vessel, which had begun leaking oil as a result of grounding, was deliberately bombed to prevent oil pollution damage and consequently sank. According to Cl. 2-8 (b), such loss and the damage caused by the measure taken is a marine peril because the original peril (the grounding) is a marine risk. If, however, the original peril had been a war risk (e.g. damage by torpedo), the loss and consequential damage would, according to Cl. 2-9, sub-clause 1 (e), be a war peril.