Additional premium under hull war and strike insurance policy

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Hull and machinery insurance does not cover loss or damage to the vessel caused by war and strike risks. These are covered by separate hull war and strike insurance which references the Institute’s war and strike clauses (Hulls-Time).

Almost all Hull War and Strike insurance policies provide a sailing area for the insured vessel which is always subject to the latest Joint War Zones (JWLA list) published by the Joint War Committee. In principle, travel to these listed areas is not covered by Hull War and Strike policies, but may be included in endorsements upon payment of additional premiums.

Related to the above, the question arises for insured vessels that have sailed and are currently in an area before that area was included in the current JWLA list. In this case, although the vessel is already covered by insurance against war and strike risks, are the insurers entitled to withdraw the cover or to claim additional premiums for the current risk?

Ukrainian and Russian waters of the Black Sea and Sea of ​​Azov have been included in the latest revision of the List of Listed Areas for Hull Warfare, Piracy, Terrorism and Related Perils (JWLA-028) published by the Joint War Committee on 15.02. 2022, the above question becomes much more debatable.

In practice, it is observed that insurers claim additional premiums even for insured ships that have called at Ukrainian or Russian ports before these ports were included in the JWLA list. Given that the Hull War and Strike insurance policies are subject to the latest JWLA list, the insurers’ request for additional premium seems reasonable, but the amount of additional premium should be assessed fairly for said vessels.

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