Miller's Marine War Risks

Michael Davey; James Davey and Oliver Caplin

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CHAPTER 29 Cargo War and Strikes Clauses

Introductory

29.1 Unlike ships, cargo is insured for War and Strikes under two separate sets of clauses, the War Clauses and the Strikes Clauses.

Institute War Clauses (Cargo)

29.2 The War Clauses (Cargo) cover war, etc. (Clause 1.1), capture and seizure, etc. (Clause 1.2), but notably only arising from risks covered under Clause 1.1, derelict mines, etc. (Clause 1.3) and general average and salvage charges incurred to avoid or in connection with the avoidance of loss from a risk covered (Clause 2). The perils are considered elsewhere: war, etc. is considered in –10; capture and seizure, etc. are considered in –14; and derelict mines, etc. are considered in .

Institute Strikes Clauses (Cargo)

29.3 The Strikes Clauses (Cargo) cover damage caused by strikers, etc. (Clause 1.1), any terrorist or any person acting from a political motive (Clause 1.2), and general average and salvage charges incurred to avoid or in connection with the avoidance of loss from a risk covered (Clause 2). The perils are considered elsewhere: strikers, etc. is considered in ; terrorism is considered in ; and political motives are considered in . 29.4 These Clauses do not cover all of the perils excluded from the Marine Clauses. In particular, they do not cover the pure economic loss to which an industrial dispute may give rise. Nor is physical loss or damage to the cargo due to delays caused by strikes, etc. insured by the Cargo Strikes Clauses (or for that matter by the new Cargo Marine Clauses).

Exclusion Clauses

29.5 Both the War Clauses (Cargo) and the Strikes Clauses (Cargo) exclude wilful misconduct of the Assured (Clause 3.1), loss damage or expense caused by delay, even though the delay be caused by a risk insured against (Clause 3.5), loss damage or expense arising from insolvency or financial default of the owners, managers, charterers or operators of the vessel (Clause 3.6), and any claim based upon loss of or frustration of the

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voyage or adventure (Clause 3.7). There is also an exclusion in respect of unseaworthiness of vessel or craft, unfitness of vessel, craft, conveyance container or liftvan for the safe carriage of the subject-matter insured, where the Assured or their servants are privy to such unseaworthiness or unfitness, at the time the subject-matter insured is loaded therein (Clause 4). 29.6 Both the War Clauses (Cargo) and the Strikes Clauses (Cargo) contain exclusions in respect of nuclear weapons. The War Clauses refer to “hostile” use, but the Strikes Clauses do not contain such a qualification. The test of a nuclear weapon may be a non-hostile use. 29.7 The Strikes Clauses (Cargo) contain two extra exclusions not found in the War Clauses (Cargo), namely:

3.7 loss damage or expense arising from the absence shortage or withholding of labour of any description whatsoever resulting from any strike, lockout, labour disturbance, riot or civil commotion

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