Marine Cargo War and Strikes Insurance

What Is Marine Cargo War and Strikes Insurance?

Marine cargo war and strikes insurance refers to the clauses that address loss of or damage to cargo caused by war (Cargo War) and by strikes, civil commotion, terrorism and persons acting from certain political, ideological or religious motives (Cargo Strikes). These clauses are attached to the main cargo policy and are assessed separately from it.

This cargo-side structure is separate from hull war cover for the vessel itself; for the vessel side see Marine Hull War, Strikes and Related Perils Insurance. The texts examined on this page are the 01/01/2009 sample texts of the Institute War Clauses (Cargo) (CL385) and the Institute Strikes Clauses (Cargo) (CL386); the version attached to a policy may differ.

This page is for general information only; it does not mean the scope, price, acceptance or payment of any particular policy is guaranteed.

War, Strikes, SRCC, Terrorism and Piracy Are Not One Cover

• War (Cargo War): War, civil war, revolution, rebellion, insurrection or civil strife arising from them, and hostile acts by or against a belligerent power; also capture, seizure, arrest, restraint and detainment arising from those risks, and derelict mines, torpedoes and weapons.
• Strikes and civil commotion (Cargo Strikes): Loss or damage caused by strikers, locked-out workmen or persons taking part in labour disturbances, riots or civil commotions.
• Terrorism: An act of a person acting on behalf of, or in connection with, an organisation that carries out activities directed towards overthrowing or influencing, by force or violence, any government. It appears as a separate peril in the sample Strikes clause.
• Political, ideological or religious motive: Appears as a separate peril in the sample Strikes clause.
• SRCC: SRCC (Strikes, Riots and Civil Commotions) is a commonly used market abbreviation, but it does not appear in the clause texts examined. The Cargo Strikes clause is wider than SRCC because it also includes terrorism and persons acting from political, ideological or religious motives.
• Piracy: Considered separately. Under ICC (A) the war exclusion is stated to except piracy (piracy excepted), so piracy does not fall within that exclusion; piracy does not appear among the named perils of ICC (B). Piracy is not separately listed among the perils of the Cargo War and Cargo Strikes clauses.

Cargo War: War Risks

The Institute War Clauses (Cargo) text examined (CL385, 01/01/2009) has the following structure:

• Scope of perils: War, civil war, revolution, rebellion, insurrection or civil strife arising from them and hostile acts; capture, seizure, arrest, restraint and detainment arising from war risks; derelict mines, torpedoes, bombs and weapons of war.
• General average and salvage: General average and salvage charges incurred to avoid loss from a covered risk are dealt with according to the contract of carriage and the governing law and practice.
• Attachment tied to the stage of carriage: The insurance attaches only as the cargo is loaded on an oversea vessel; storage on land or road legs are therefore outside Cargo War cover.
• Termination: Cover ends on discharge at the final port or place of discharge or on expiry of 15 days from the day of arrival of the vessel, whichever occurs first. Reattachment and transhipment carry conditions such as notice and additional premium.
• Mines and torpedoes extension: This is a narrow extension limited to the risks of floating or submerged mines and derelict torpedoes: it applies while the insured cargo or any part of it is on craft in transit to or from the oversea vessel. In no case does it run beyond the expiry of 60 days after discharge from the oversea vessel, unless otherwise specially agreed by the insurers. It is not a general rule applying to all Cargo War cover.
• Onward carriage by air: Where the onward carriage is by aircraft, the Institute War Clauses (Air Cargo) are deemed to form part of the contract.

Cargo Strikes: Strikes, Civil Commotion and Terrorism

The Institute Strikes Clauses (Cargo) text examined (CL386, 01/01/2009) has the following structure:

• Scope of perils: Strikers, locked-out workmen or persons taking part in labour disturbances, riots or civil commotions; an act of terrorism (on behalf of, or in connection with, an organisation); any person acting from a political, ideological or religious motive.
• General average and salvage: Charges incurred to avoid loss from a covered risk are dealt with.
• Transit structure: Unlike Cargo War, the insurance attaches from the time the cargo is first moved in the warehouse or place of storage for the purpose of loading for the commencement of transit and continues during the ordinary course of transit, terminating on completion of unloading at the final warehouse or on expiry of 60 days after discharge overside, among other conditions.
• Specific exclusions: In the sample text, loss, damage or expense arising from the absence, shortage or withholding of labour resulting from a strike, lockout, labour disturbance, riot or civil commotion, and loss caused by war risks, fall outside the Strikes clause.

Both clauses carry principal exclusions such as delay, inherent vice, insufficient packing and insolvency or financial default; see the exclusions section below.

ICC A, B and C Distinguished from the Cargo War and Cargo Strikes Clauses

For the details of the main cargo cover see the Marine Cargo Insurance page.

Cancellation, Geographic Limits and Additional Premium

• Cargo War cancellation: In the Institute War Cancellation Clause (Cargo) examined (CL271, 1/12/82) and the similar cancellation clause (CL396), underwriters or the assured may cancel the war cover; cancellation becomes effective on the expiry of 7 days from midnight of the day on which notice is issued. Insurances that have attached under the clause terms before cancellation becomes effective are not affected.
• Cargo Strikes cancellation: Cancellation terms for strikes risks depend on the cancellation clause in the policy; no period is given on this page.
• Geographic limits: The clause texts do not by themselves impose a geographic limit. Country or area restrictions, additional premium, sanctions assessment and additional conditions are set in the insurer's policy arrangements.
• Listed areas: The Joint War Committee's listed areas concern hull war, piracy, terrorism and related perils for vessels; cargo is assessed separately and this page does not carry a fixed list.
• Additional premium: War and strikes premium is usually shown separately from the basic cargo premium and varies with the nature of the voyage; no rates are given on this page.

Principal Exclusions in the Sample Texts

• Wilful misconduct of the assured.
• Ordinary leakage, ordinary loss in weight or volume and ordinary wear and tear.
• Insufficiency or unsuitability of packing or preparation carried out by the assured or their employees (stowage in a container counts as packing).
• Inherent vice or nature of the cargo.
• Loss, damage or expense caused by delay, even if the delay is caused by an insured risk (general average and salvage charges are separate).
• Insolvency or financial default of the owners, managers, charterers or operators of the vessel where the assured are or should be aware of it.
• Claims based on loss of or frustration of the voyage or adventure.
• Hostile use of atomic or nuclear weapons.
• Unseaworthiness of the vessel or unfitness of the container or conveyance where the assured are privy to it.

Cargo War and Strikes Cover Distinguished from Carrier and Forwarder Liability

• Cargo insurance: War and strikes clauses address loss of or damage to the cargo itself.
• Carrier and forwarder liability: CMR and FFL policies address the legal liability of the carrier or forwarder; cargo insurance does not benefit the carrier or other bailee (the sample Cargo War text says so expressly). See the CMR and FFL pages.
• Hull cover: War and strikes risks to the vessel itself are the subject of Marine Hull War, Strikes and Related Perils Insurance.

Insurable Interest and the Parties to the Transport

• Cargo owner: The economic interest in the cargo is the basic foundation for cover; the sample texts require an insurable interest at the time of the loss.
• Exporter and importer: The interest may shift between the parties according to the sales contract, the delivery terms and the point at which risk actually passes.
• Carrier and freight forwarder: They have interests in respect of their own legal liability; an interest in the cargo itself is not automatic.

Delivery terms (Incoterms) are an important indicator of how risk and costs are divided between the parties, but on their own they do not determine insurable interest in every case.

Placement in Türkiye and the Legal Framework

Under Article 15 of Insurance Law No. 5684, persons resident in Türkiye must place their insurable interests in Türkiye with insurance companies operating in Türkiye. The same article lists cargo insurance for goods that are the subject of import and export among the insurances that may also be placed abroad. Domestic transport is not listed as the subject of that exception.

Whether war and strikes clauses attached to a main cargo policy are treated as falling within that exception depends on the structure of the policy and on the current state of the law and its secondary regulations; secondary regulations and the current Treasury and insurance legislation should be checked.

Information Needed for a Quotation and Underwriting

• Type and insured value of the cargo
• Origin, destination and transhipment points; mode of transport
• Carrier and vessel details (flag, class, age)
• Packing and container structure; storage periods
• Shipment dates and delay or waiting scenarios
• Countries and ports connected with high-risk areas or listed areas
• Information for sanctions screening of buyer, seller and other parties
• Existing open cover or floating policy structure
• Requested limits, deductibles and clause version

This list is illustrative; the information and documents requested vary by insurer and policy structure and should not be read as a single mandatory standard form for every insurer. Acceptance, requests for further information and terms rest with the relevant insurer.

Frequently Asked Questions

Neolife's Role

Neolife Group can assess the transport and cargo information, help determine a cover structure suited to the need, explore suitable insurance and reinsurance solutions, carry out placement work and compare the quotations received. This does not imply the war and strikes capacity of any particular insurer or reinsurer, acceptance of cover, price or payment; those depend on the relevant insurer and the policy terms.

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