Miller's Marine War Risks

Page 269




30.1 Containers are insured in the London Market by the Institute War and Strikes Clauses Containers—Time. Containers may also be insured on mutual terms, with cover that is similar to the Institute Clauses cover. 30.2 The Institute insured perils and principal exclusions for containers are identical or similar in wording to the clauses used to cover ships and need little further separate comment. In the exclusion for capture and seizure, etc., by or under the order of a government or any public or local authority, the relevant country is not that of the vessel’s registration, but of the country where the Assured have their principal place of business. There are additional exclusions for shortage or withholding of labour, for insolvency or financial default.1 30.3 The Container Clauses end with a Schedule which consists of a series of boxes in which are entered details such as the type and size of the containers which are insured, their identification marks, their value, and the agreed Deductible. The details entered in the box “Sea and Territorial Limits (which are deemed to include normal flying routes between these Sea and Territorial Limits)” describe the geographical area within which the containers are insured. Clause 6 defines the scope of the insurance. 30.4 Clause 6.1 provides that the containers are insured only whilst on board an oversea vessel,2 (including whilst on deck) or on board an aircraft, within the sea and territorial limits specified in the Schedule. Clause 6.4 reinforces this by excluding loss, etc., arising whilst the container is not on board an oversea vessel or an aircraft. There are two exceptions to this general rule. First, the insurance for the risks of “mines and derelict torpedoes, floating and submerged” is extended by Clause 6.2 whilst the containers are on board any vessel or craft (i.e. not necessarily an oversea vessel). Second, the insurance for strikers, terrorists and persons acting from a political motive is extended by Clause 6.3 whilst the containers are on board any vessel or craft or whilst ashore, including whilst loading and unloading, except for loss or damage arising out of war, etc. 30.5 Where containers leave the agreed scope of the insurance, there is no held covered provision in the Container War and Strikes Clauses (whereas there is such a clause in the Marine Clauses). This is because of the Waterborne Agreement, a market understanding which restricts war risk cover for goods to the time whilst they are on the vessel.