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21.1 “Confiscation” and “expropriation” were not insured perils under the S.G. Form, but were introduced in the early 1980s when the new Institute Time Clauses were introduced with the MAR Form. They are found in the Clauses for Hulls, Freight and Containers, but are not insured perils in the Cargo clauses. Relevant exclusions are those for requisition, and for capture and seizure, etc., by the country of registry of the vessel (or place of business of the container insured), or as a result of infringement of customs or trading regulations (see ).
21.2 There is no authority on the meaning of confiscation or expropriation, though vessels have been confiscated on account of smuggling in the Anita,1the B Atlantic,2 and (subject to release by payment) in Cory v. Burr.3 In the South African case of the Morning Star,4 the vessel was confiscated for non-payment of a fine. The ordinary meaning of confiscation is where the state appropriates property on the grounds of illegality. Expropriation is dealt with in international law, and refers to the appropriation of foreign-owned property by the State for political purposes. Compensation may be required if it is to be lawful. It is distinguishable from nationalization by the State of the property of its citizens.