War Perils: War perils covered by the Institute War Clauses refer to following events:
i) War, civil war, revolution, rebellion, insurrection or civil strike or any hostile act by or against a belligerent power;
ii) Capture, seizure, arrest, restraint or detainment of carrier or. craft arising from event mentioned in (i) above. Thus, confiscation by the customs authorities of goods being smuggled cannot be insured; and
iii) Derelict (abandoned) mines, torpedoes, bombs or other derelict weapons of war. It is clear from the above that war risk insurance is not only against hostile or warlike acts but also for perils which continue to exist even after war is over.
War risk cover is provided with certain restrictions about the duration of the cover. Some of the major r castrations are:
a) The cover is restricted to the period while the goods are water-borne in the ship or are in the craft;
b) The cover attaches as the goods are loaded into the vessel /air craft or craft used to carry the goods to the vessel;
c) The cover terminates either as the goods are discharged from the vessel /air craft at the final port of discharge or on the expiry of 15 days from the midnight of the day of the annual, whichever is earlier. The limit of 15 days also applies to cases where vessel /air craft carrying cargo cannot go to the final port and the cargo is discharged it some other port; and
d) In the case of sea shipments, the 15-day limit does not apply where cargo after being discharged from the overseas vessel into a craft for delivering the cargo to the shore. The time limit for goods in crafts is 60 days after discharge from the overseas vessel.