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Section 2: Termination of the insurance

  • Clause 15-5. War between the major powers

    In the event of war or war-like conditions breaking out between any of the following States:

    The United Kingdom, the United States of America, France, the Russian Federation, the People's Republic of China, the insurance against war perils shall automatically terminate.

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    Clause 15-5. War between the major powers

    The Clause was edited in 2016. It is intended to have the same effect as the Automatic Termination of Cover used for war risk insurance in the English market and regularly included in all war risks reinsurance contracts. The provision means that if war or war-like conditions arise between two or...

  • Clause 15-6. Use of nuclear arms for war purposes

    In the event of any use of nuclear arms for war purposes, the insurance shall automatically terminate.

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    Clause 15-6. Use of nuclear arms for war purposes

    The Clause is intended to have the same effect as the nuclear arms clause used in the English market. It follows from the first sentence that the insurance terminates immediately if nuclear arms are used for war purposes. The ship need not be involved in the use of the nuclear arms for the...

  • Clause 15-7. Bareboat chartering

    If the ship is bareboat chartered, the insurance shall automatically terminate.

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    Clause 15-7. Bareboat chartering

    The Clause was edited in 2016 by inserting “automatically” instead of “immediately” in order to bring the wording in line with Cl. 15-6. Firstly, the insurance will automatically terminate - and not just be suspended - if the ship is chartered out under a bareboat charterparty. Secondly, the...

  • Clause 15-8. Cancellation

    In the event of a change of risk, the person effecting the insurance as well as the insurer is entitled to cancel the insurance by giving seven days' notice (such cancellation becoming effective on the expiry of 7 days from midnight of the day on which notice of cancellation is issued by or to the insurer). Cancellation also applies to the rights of the mortgagee, but the insurer shall immediately notify the mortgagee of the cancellation.

    The insurer will endeavour, to the extent practically and commercially possible, to submit a proposal for continuation of the insurance at the best available terms in the changed circumstances.

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    Clause 15-8. Cancellation

    The provision concords with the approach in the English war risk insurance conditions. The provision was amended in 2016 by the addition of the words in brackets in the first sentence of sub-clause 1. Sub-clause 2 is completely rewritten.  Sub-clause 1, first sentence , gives both the person...