Scope of cover

War and similar risks are excluded from cover under the basic insurance policy (Article 3 of the policy). This exclusion is standard practice in all marine insurance markets.

Special conventions for the marine insurance of vessel hulls against war and similar risks cover the following:

• loss of and damage to the insured vessel, as well as third-party recovery claims against it, which results from foreign or civil war and generally all accidents and misfortunes of war and acts of sabotage or terrorism of a political nature or related to war
• loss and damage that result from capture, taking at sea, arrest, seizure, detainment or confiscation by any government or authority whatsoever
• riots, civil commotion, strikes, lockouts and other similar events

Also covered, by extension:

• acts of piracy of a political nature or related to war.

In order to offer the best protection for the insurance beneficiary, French law and the policy have instituted the practice of presumption to determine the cause or origin of the event: "When it is not possible to determine whether or not the loss or damage was caused by a risk of war or a peril of the seas, then it is assumed to have been caused by an occurrence at sea." (Article L 172-17 of the French Insurance Code).

In addition, it is important to note that cover includes:

• Loss and damage resulting from nuclear fission weapons and rockets, as well as
• Dispossession of the vessel following its seizure, detainment or confiscation by a government or any other authority. Dispossession under these circumstances gives rise to the right to abandonment of the vessel after a certain period of time has expired.

Similar cover can be granted to yachts, river craft, offshore platforms and other special-purpose craft.

Article L 172-16 of the Insurance Code provides that:

The insurer does not cover the following risks:

1. civil or foreign war, mines or other engines of war
2. piracy
3. capture or detainment by any government or authority whatsoever
4. riots, civil commotion, strikes, lockouts, acts of sabotage or terrorism

These exclusions are optional, which means that the co-contracting parties may decide that they are bought out and covered under the policy subject to an additional premium.

War risks are insured under special agreements and conventions designed to cover hulls against war and similar risks which, nonetheless, have no effect and cannot exist unless they supplement an insurance policy that covers ordinary risks*. Consequently, they cannot be taken out in isolation or autonomously.

Given the exceptional nature of the risks, insurers and those they insure reserve the right to cancel the policy at any time. Notice of cancellation must be given in writing (certified letter). Cancellation goes into effect three full days after the notice of cancellation has been sent. There is no automatic termination.

In marine insurance, risks of terrorism are either covered under a special policy for war and similar risks, or they are covered more broadly under a property insurance policy, pursuant to the Law of September 9, 1986.

For assureds choosing not to take out coverage against war risks, acts of terrorism are covered under their property insurance policy, as provided for under the Law of September 9, 1986* .

In accordance with a French decree dated December 28, 2001, it is possible to dissociate the amount of coverage against terrorism from the other risks of property damage by setting a minimum: for risks other than cargo, the minimal threshold is 20% of the insured capital value or 20 million euros.

Assureds therefore have the option of choosing a coverage amount for terrorism that differs from that for other coverage under property insurance policies.

• Conventions spéciales pour l'assurance maritime des corps de navires contre les risques du guerre et risques assimilés
• Conventions spéciales pour l'assurance des corps de bateaux de navigation intérieure contre les risques de guerre et risques assimilés
• Conventions spéciales pour l'assurance des corps de navires de plaisance contre les risques de guerre et risques assimilés