Marine Cargo Insurance — War Risks and Strikes Risks
Interlink編集部War Risks and Strikes Risks are special categories of risk in marine cargo insurance that must be considered separately from the ordinary Institute Cargo Clauses.
Under ICC(A), ICC(B) and ICC(C), war, civil war, revolution, rebellion and other war-related risks, as well as strikes, riots, civil commotions, terrorism and related risks, are generally excluded from the ordinary cargo clauses. Where protection against those risks is required, the actual policy must be checked to determine whether Institute War Clauses (Cargo), Institute Strikes Clauses (Cargo) or other relevant clauses have been incorporated.
However, the fact that a policy includes “War” or “Strikes” cover does not mean that every loss connected with conflict, civil unrest or industrial action is insured. Cause, insured peril, duration, transit stage, exclusions, change of voyage, additional premium, sanctions provisions and other contractual conditions must still be analysed.
A particularly important distinction is that Institute War Clauses (Cargo) and Institute Strikes Clauses (Cargo) have materially different duration structures. Under standard Institute War Clauses (Cargo) 1/1/09, war cover generally attaches when the cargo is loaded on an oversea vessel. Institute Strikes Clauses (Cargo) 1/1/09, by contrast, use a transit structure beginning when the cargo is first moved at the place of storage for the purpose of commencing transit.
Unless otherwise stated, this article focuses on Institute War Clauses (Cargo) 1/1/09 and Institute Strikes Clauses (Cargo) 1/1/09 and explains their relationship with the ordinary ICC, insured risks, exclusions, duration, change of voyage, sanctions, high-risk routes, casualty handling and freight-forwarding practice. Actual policies may include insurer-specific wording, a Termination of Transit Clause, a Sanction Limitation and Exclusion Clause or other endorsements, so the full insurance contract must be reviewed in an individual case.
Scope of This Article
| Item | What This Article Covers | What Other Articles Cover |
|---|---|---|
| War risks | Insured risks, exclusions, duration and change of voyage under Institute War Clauses (Cargo) | ICC(A), ICC(B) and ICC(C) examine ordinary cargo risks |
| Strikes risks | Insured risks, exclusions, duration and causation under Institute Strikes Clauses (Cargo) | The ICC articles examine ordinary cargo loss |
| Relationship with ordinary ICC | How risks excluded under ICC Clauses 6 and 7 may be considered under separate clauses | Excluded Losses under Cargo Marine Insurance examines the overall structure of Clauses 4 to 7 |
| All Risks terminology | Why ICC(A) does not automatically include War or Strikes cover | Misunderstanding of All Risks Coverage addresses customer communication and expectation management |
| Duration | The different Transit Clause structures applying to War and Strikes cover | Insurance Period examines ordinary ICC duration in detail |
| Delay | Why delay loss is not automatically insured merely because War or Strikes cover applies | Delay Damage examines physical loss and economic loss in detail |
| Sanctions | Why sanctions are a separate underwriting and payment issue rather than an insured war peril | Trade-control and sanctions articles examine regulatory restrictions |
| High-risk routes | Conflict-area routing, route changes and additional calls | Transit Route and Insurance Period examine ordinary transit |
| Casualty response | Cause, wording, duration, mitigation and preservation of third-party rights | Carrier Liability and Subrogation examine recovery against responsible parties |
Basic Relationship Between Ordinary ICC and War or Strikes Cover
Under ordinary ICC(A), ICC(B) and ICC(C), war risks are generally excluded under Clause 6, while strikes, riots, civil commotions, terrorism and related risks are generally excluded under Clause 7.
Accordingly, even where the physical form of the loss is fire, breakage or destruction, an event caused by war, riot, terrorism or another risk excluded from the ordinary ICC should not be analysed solely under the basic cargo clauses. The first question is whether Institute War Clauses or Institute Strikes Clauses have been incorporated.
For example, an accidental electrical fire in a warehouse and deliberate arson committed for a political motive may require different insurance analysis even though both produce fire damage. The physical appearance of the damage should not replace investigation into the actor, cause and motive.
Differences Between Institute War Clauses and Institute Strikes Clauses
| Item | Institute War Clauses (Cargo) | Institute Strikes Clauses (Cargo) | Practical Significance | Main Evidence |
|---|---|---|---|---|
| Principal risks | War, civil war, revolution, rebellion, insurrection, related civil strife and hostile acts by or against a belligerent power | Acts of strikers, locked-out workmen and persons participating in labour disturbances, riots or civil commotions | Classify the cause rather than relying on the casualty label | Official reports, police records and carrier notices |
| Capture and detention | Clause 1.2 deals with capture, seizure, arrest, restraint or detainment arising from Clause 1.1 risks | Not an ordinary insured peril under the Strikes wording | Do not automatically classify every administrative detention as a War risk | Authority order, reason for detention and conflict background |
| Derelict weapons | Clause 1.3 addresses derelict mines, torpedoes, bombs and other derelict weapons of war | Not ordinarily included | War remnants can remain relevant after active hostilities | Official maritime casualty evidence |
| Terrorism | Standard Clause 1 does not contain the same general terrorism wording as the Strikes Clauses | Clauses 1.2 and 1.3 address specified terrorism and acts motivated by political, ideological or religious purposes | Do not classify every terrorist act mechanically as a War risk | Actor, organisation, motive and official evidence |
| Attachment | Generally when the cargo is loaded on an oversea vessel | Generally when the cargo is first moved at the place of storage for the immediate commencement of transit | War cover is not the same as ordinary Warehouse-to-Warehouse cover | Loading records, B/L and pickup records |
| Termination at final port | Generally on discharge from the oversea vessel or expiry of the relevant 15-day period, whichever occurs first | Final unloading, election of non-transit storage or expiry of 60 days after final discharge, subject to whichever contractual event occurs first | Duration management differs materially | Vessel arrival, discharge, release and delivery records |
| Delay | Delay loss is excluded under Clause 3.5 | Delay loss is excluded under Clause 3.5 | War or Strikes cover does not automatically insure commercial delay loss | Cargo condition, transit schedule and loss statement |
| Shortage of labour | Not the principal issue under the War wording | Clause 3.7 excludes loss arising from absence, shortage or withholding of labour resulting from strikes and related events | Distinguish industrial action itself from direct physical cargo damage | Port notices and cargo-damage evidence |
| Change of destination | Clause 6 requires prompt notification and agreement of rates and terms | Clause 7 contains corresponding change-of-voyage provisions | Route changes into higher-risk areas should be communicated promptly | Booking, route-change notice and insurer response |
Main Structure of Institute War Clauses (Cargo) 1/1/09
| Clause | Main Subject | Practical Significance | Caution |
|---|---|---|---|
| Clause 1 | Loss of or damage to cargo caused by specified war risks | Covers specified war-related events, certain capture or detention and derelict weapons | Standard Clause 1.2 links capture and similar events to Clause 1.1 risks |
| Clause 2 | General average and salvage charges | Addresses specified charges incurred in avoiding insured war loss | The wording is not limited to direct cargo damage |
| Clause 3 | General exclusions | Includes wilful misconduct, ordinary loss, packing, inherent vice, delay and frustration of voyage | War cover is not unlimited cover |
| Clause 4 | Unseaworthiness and unfitness | Knowledge and loading circumstances may be material | A defective container does not by itself determine the exclusion |
| Clause 5 | War-specific Transit Clause | Cover generally attaches only when cargo is loaded on an oversea vessel | Do not apply ordinary Warehouse-to-Warehouse duration mechanically |
| Clause 6 | Change of Voyage | A change of destination by the Assured must be notified promptly | New rates, terms or additional premium may be required |
| Clause 8 | Insurable Interest | The claimant must satisfy the applicable insurable-interest requirement | Existence of insurance and entitlement to claim are separate issues |
| Clause 11 | Minimising Losses | Requires reasonable mitigation and preservation of third-party rights | The casualty process does not end with an insurance notification |
| Clause 14 | Law and Practice | The standard wording states English law and practice | The complete insurance contract should still be reviewed |
War-Risk Duration Is Not Ordinary Warehouse-to-Warehouse Cover
Clause 5 of Institute War Clauses (Cargo) 1/1/09 is particularly important.
Under the standard wording, war-risk insurance generally attaches when the insured cargo, or the relevant part of it, is loaded on an oversea vessel.
At the final port, it generally terminates when the cargo is discharged from the oversea vessel or upon expiry of the relevant 15-day period calculated from the vessel's arrival at the final port or place of discharge, whichever occurs first.
It is therefore unsafe to assume that, because ordinary marine cargo insurance operates on a Warehouse-to-Warehouse basis, War cover automatically follows the cargo from the exporter's factory through inland transport to the final inland destination.
Where cargo is discharged at an intermediate or refuge port, Clause 5.2 introduces separate rules concerning the 15-day period, reattachment upon onward loading and possible additional premium. Where the voyage terminates at another port and cargo is subsequently reshipped, notification and reattachment requirements must also be considered.
Clause 5.4 also contains a specific extension relating to mines and derelict torpedoes while cargo is on craft in transit to or from the oversea vessel. War duration should therefore not be reduced to a single generic start-and-end rule.
Main Structure of Institute Strikes Clauses (Cargo) 1/1/09
| Clause | Main Subject | Practical Significance | Caution |
|---|---|---|---|
| Clause 1.1 | Strikers, locked-out workmen and participants in labour disturbances, riots or civil commotions | Addresses physical loss or damage caused by such persons | The mere existence of a strike is insufficient |
| Clause 1.2 | Specified acts of terrorism | Addresses certain acts connected with organisations seeking to influence government by force or violence | Investigate cause, actor and organisational connection |
| Clause 1.3 | Acts motivated by political, ideological or religious purposes | Motive may become central to classification of the casualty | Distinguish ordinary vandalism from a covered motivated act |
| Clause 2 | General average and salvage charges | Addresses specified expenses connected with avoidance of an insured risk | Not restricted solely to direct physical cargo damage |
| Clause 3.5 | Delay exclusion | Delay loss remains generally excluded even where delay follows an insured risk | Separate physical cargo damage from commercial loss |
| Clause 3.7 | Absence, shortage or withholding of labour | Excludes loss arising from labour shortage resulting from strikes and related events | Do not interpret Strikes cover as insurance for every consequence of industrial action |
| Clause 3.8 | Loss or frustration of the voyage or adventure | Distinguishes failure of the transport plan from physical cargo damage | Identify the actual cargo loss |
| Clause 3.10 | War risks | Excludes war, civil war, revolution and related hostile acts from the Strikes wording | Keep War and Strikes analysis separate |
| Clause 5 | Transit Clause | Provides a duration structure based on the ordinary course of transit | It differs materially from the War Clause duration |
| Clause 6 | Termination of Contract of Carriage | Deals with continuation where the carriage terminates unexpectedly | Prompt notice and additional premium may be required |
| Clause 7 | Change of Voyage | Requires prompt notice where the Assured changes destination | A loss may occur before new terms are agreed |
| Clause 11 | Minimising Losses | Requires mitigation and preservation of third-party rights | These duties run alongside the insurance notification |
| Clause 14 | Law and Practice | The standard wording states English law and practice | Review the complete contract |
A Strike and a Strikes Loss Are Not the Same Thing
One of the most common misunderstandings is that every loss resulting from a port strike becomes recoverable once Institute Strikes Clauses have been added.
If port workers stop work and cargo is delayed for ten days, causing the cargo owner to miss the selling season, the resulting loss of market or contractual penalties are not the same as direct physical cargo damage.
Institute Strikes Clauses (Cargo) 1/1/09 Clause 3.7 also excludes loss arising from the absence, shortage or withholding of labour resulting from a strike, lockout, labour disturbance, riot or civil commotion.
By contrast, if rioters deliberately set fire to a warehouse and the insured cargo is physically burned, the analysis may turn to whether the physical loss was caused by a peril within Clause 1.
The practical question is therefore not merely whether a strike occurred. It is who did what, and how that act physically affected the cargo.
Capture, Seizure and Detention Require Analysis of the Reason
Institute War Clauses (Cargo) 1/1/09 Clause 1.2 addresses capture, seizure, arrest, restraint or detainment, but under the standard wording those events are connected with the war risks described in Clause 1.1.
Accordingly, customs detention, enforcement of a civil debt, import-regulation action, sanctions enforcement or another administrative restriction should not automatically be treated as a War-risk detention merely because the cargo or vessel has been stopped.
Clause 3.7 also excludes claims based upon loss of or frustration of the voyage or adventure. The fact that cargo cannot move for an extended period does not therefore mean that lost sales, penalties or other economic consequences are automatically insured.
Capture or detention cases should identify the actor, legal basis, military or political background, actual loss or damage to the cargo and any policy-specific extensions.
Sanctions Are Not Themselves an Insured War Peril
Shipments involving sanctioned territories, sanctioned parties or restricted transactions may raise issues that are separate from War-risk coverage.
Sanctions do not themselves constitute an insured peril under Institute War Clauses. Where a policy contains a Sanction Limitation and Exclusion Clause or comparable wording, the separate issue may be whether providing insurance, paying a claim or providing another benefit would expose the insurer to an applicable sanction, prohibition or restriction.
It is therefore unsafe to conclude that War cover necessarily responds to a sanctioned shipment or that cargo detained under sanctions automatically gives rise to a War claim.
Where sanctions concerns arise, the destination, transit points, shipper, cargo owner, banks, vessel, cargo and relevant controlling parties should be organised for review by the insurer, insurance intermediary and, where appropriate, specialist sanctions or trade-control counsel.
Situations Requiring Review by Region and Transit Stage
| Situation | Main Risk | Relevant Cover or Clause | Practical Caution | Action |
|---|---|---|---|---|
| Transit through an area affected by armed conflict | Hostile acts, detention or derelict weapons | Institute War Clauses and additional terms | Confirm War duration and route conditions | Refer route and ports to the insurance side before shipment |
| Inland movement before loading at the port | Political violence, riot or terrorism | Institute Strikes Clauses and other applicable endorsements | Standard War cover generally has not yet attached before loading on the oversea vessel | Confirm required cover for the inland stage separately |
| Discharge at an intermediate or refuge port | War risks and prolonged waiting | War Clause 5.2 and related provisions | Review the 15-day period, reattachment and additional premium | Notify the insurer promptly |
| Port strike | Work stoppage, delay or riot | Institute Strikes Clauses | Distinguish labour shortage and delay from physical damage | Identify actual cargo damage and cause |
| Riot or civil commotion | Arson, destruction or looting | Strikes Clauses and ordinary ICC | Identify actor, motive and causal relationship with physical damage | Collect police, fire and local-agent records |
| Terrorist attack | Attack on warehouse, vessel or vehicle | Strikes Clauses and any Termination of Transit Clause | Special endorsements may impose additional duration requirements | Review the full policy and cause |
| Sanctions-related shipment | Underwriting or claim-payment restriction | Sanctions Clause and related terms | Do not confuse sanctions with an insured War peril | Screen the parties, cargo and locations before shipment |
| Route change to avoid conflict | Additional calls and newly exposed regions | War Clause 6 and Strikes Clause 7 | Notification, revised terms or additional premium may be required | Notify the insurance side promptly when the change becomes known |
War and Strikes Coverage Analysis Flow
- Review the complete insurance contract.
Check the ICC, Institute War Clauses, Institute Strikes Clauses, Termination of Transit Clause, Sanctions Clause and other endorsements. - Confirm the wording version.
Identify whether the applicable wording is 1/1/09 or another version. - Identify the insured cargo and insurable interest.
Confirm that the cargo is insured and the claimant has the required interest at the time of loss. - Establish the exact place and time of the casualty.
Identify whether the cargo was at the factory, port, aboard the vessel, at an intermediate port, at the final port, in storage or in inland delivery. - Apply the separate War and Strikes duration rules.
Do not assume that the War period follows the ordinary ICC period. - Identify the cause.
Determine whether the event involved hostile action, detention, riot, strikers, terrorism or a politically motivated act. - Match the cause to the relevant insured peril.
Review Clause 1 of the War or Strikes wording. - Establish causation.
The existence of conflict or a strike is not enough; identify how the insured event caused the cargo loss. - Review exclusions.
Consider delay, packing, inherent vice, labour shortage and frustration of the voyage. - Review route or destination changes.
Confirm notice requirements, additional premium and revised underwriting terms. - Review sanctions and other additional conditions.
Determine whether a separate underwriting or payment restriction applies. - Mitigate the loss and preserve third-party rights.
Protect the cargo and preserve claims against carriers, warehouses and other parties. - Submit the evidence to the insurer or insurance intermediary.
Organise causation, wording, duration, quantum and official evidence for the coverage determination.
Cases That Frequently Cause Practical Problems
| Case | Main Cause or Issue | Evidence | Decision Point | Initial Action |
|---|---|---|---|---|
| Vessel detained in connection with armed conflict | Whether detention falls within Clause 1.2 by reason of a Clause 1.1 risk | Authority order, carrier notice, conflict evidence and policy | Do not classify the event from the word “detention” alone | Notify the insurer immediately and identify the legal basis |
| Port strike stops cargo release | Labour shortage or delay rather than direct physical loss | Port notices, cargo condition and release records | Review Clause 3.7 and the delay exclusion | Determine whether physical cargo damage exists |
| Rioters set fire to a warehouse | Whether the act falls within Strikes Clause 1 | Police and fire reports, CCTV and cargo photographs | Identify cause, actor and motive | Preserve official and survey evidence |
| Terrorist attack damages cargo at a port | Terrorism definition, duration and additional wording | Authority material, policy and casualty report | Review Strikes cover and any additional duration provision | Prioritise cause identification and insurance notice |
| Emergency discharge at an intermediate port | War 15-day period and reattachment | Vessel arrival, discharge and onward-loading information | Do not confuse the rule with the ordinary ICC 60-day period | Give prompt notice to insurers |
| Port of call changed to avoid conflict | Change of Voyage | Booking, carrier notice, new route and insurer response | Confirm revised terms and additional premium | Notify when the route change becomes known |
| Cargo detained because of sanctions concerns | War risk versus separate sanctions restriction | Authority notice, Sanctions Clause and party information | Do not automatically treat administrative detention as War detainment | Refer promptly to insurance and legal specialists |
| Seasonal goods miss the market because of a strike | Economic loss caused by delay | Cargo condition, sales contract and schedule | Separate physical loss from economic loss | Separate the heads of claim |
Application Scenario 1 — War-Related Detention on a Red Sea Route
Scenario: A Japanese exporter ships industrial machinery insured for JPY 120 million from Yokohama on a route passing through the Red Sea region. ICC(A) and Institute War Clauses (Cargo) are incorporated.
During the voyage, the vessel is detained by an armed group in circumstances connected with armed hostilities in the region, and delivery of the cargo is suspended for an extended period.
The analysis should not begin and end with the description “the vessel was detained.” It must determine whether the detention arises from a Clause 1.1 war risk so as to fall within the Clause 1.2 detention wording.
The next question is whether the cargo has actually been lost or damaged or whether the voyage has merely been interrupted. The War Clauses contain exclusions relating to delay and loss or frustration of the voyage, so lost sales, penalties or other economic consequences of prolonged non-delivery are not automatically insured.
The carrier's notice, official material, connection with hostile activity, cargo condition, War wording, special endorsements and any sanctions provisions should all be reviewed.
Application Scenario 2 — Cargo Destroyed During a Riot Associated with a Port Strike
Scenario: A Japanese importer ships machinery parts insured for JPY 65 million from a European port to Tokyo under insurance including Institute Strikes Clauses (Cargo).
A major port strike occurs at the loading port and part of the protest develops into a riot. Rioters damage a container stored within the port area, causing approximately JPY 18 million of physical damage to the cargo.
The analysis should not rely solely on the existence of a strike. It should determine whether the persons committing the physical destruction fall within the relevant Clause 1 wording.
If the cargo had merely remained at the port because workers stopped work, Clause 3.7 concerning absence or shortage of labour and Clause 3.5 concerning delay would be material. Direct physical destruction by rioters requires a different analysis.
Police reports, port-authority records, surveillance footage, cargo photographs and the duration provisions of the Strikes Clauses should be reviewed.
Application Scenario 3 — Sanctions Concern Following a Route Change
Scenario: A Japanese exporter ships industrial components insured for JPY 80 million from Asia to Europe. After commencement of the voyage, the shipping line changes the planned route to avoid an area of conflict and adds an unscheduled call at a third-country port.
It is subsequently identified that parties potentially involved in the new port call may raise sanctions concerns, and the insurer requests further information.
It is not sufficient to describe the problem simply as a War-risk issue because the route was changed to avoid conflict. First, any Change of Voyage requirement under the applicable War or Strikes wording should be reviewed.
Sanctions should then be analysed separately. If a Sanctions Clause applies, a different issue arises as to whether the insurer can lawfully provide cover, pay a claim or provide another benefit.
The changed route, ports, parties, shipping documents and insurer communications should therefore be documented separately for the route-change analysis and the sanctions analysis.
Freight Forwarder Involvement
These Standard Five Classifications are not legal classifications established by statute or universally accepted by the industry. They are an analytical framework used in this series to organize the scope of a freight forwarder's contractual and operational involvement.
| Standard Five Classifications | Typical Involvement | Connection with War or Strikes Risks | Limits to Confirm | Main Action |
|---|---|---|---|---|
| 1. Simple Intermediary | Connects the shipper, shipping line and insurance side | Transmits route, casualty and regional information | Should not conclusively determine underwriting or coverage | Pass information promptly to the insurance side |
| 2. Cargo Transportation Service Provider | Performs pickup, storage, handling or delivery | May become involved in physical loss during riot or terrorism | Must distinguish insurance coverage from operational responsibility | Preserve site and cargo evidence |
| 3. NVOCC / House B/L Issuer | Issues a House B/L and acts as Contracting Carrier | May face carrier-liability questions concerning route, transshipment or delivery | Failure of War or Strikes insurance does not automatically eliminate carrier liability | Review the House B/L, terms and casualty stage |
| 4. Door-to-Door Single Contractor | Contracts for the complete transport chain | Integrates inland, ocean and warehouse risk information | Door-to-door contracting does not extend standard War duration | Review insurance and transport conditions for each stage |
| 5. Agent / Coordinator for Specific Operations | Coordinates local storage, survey or alternative transport | Collects local information concerning riots, detention or port closure | Agency authority and insurance decision-making power must be confirmed | Secure official and local evidence |
The Standard Five Classifications alone do not determine liability or insurance authority. The actual analysis should also determine whether the freight forwarder acted as Contracting Carrier, Actual Carrier or merely as an arranger, and what authority it held concerning route changes, casualty notification, insurance arrangements and customer explanations.
Decision Checklist
| Stage of Review | Party to Confirm With | What to Confirm | Action If There Is a Problem |
|---|---|---|---|
| Placement | Shipper, insurer and insurance intermediary | ICC, War, Strikes and other endorsements | Review actual policy wording rather than relying on condition labels |
| Route review | Shipping line, freight forwarder and shipper | Ports, transshipment points and higher-risk regions | Refer unusual exposure to the insurance side in advance |
| War-duration review | Shipping line, insurer and insurance intermediary | Loading date, arrival, discharge and intermediate-port waiting | Do not apply ordinary Warehouse-to-Warehouse duration |
| Strikes-duration review | Insurer, warehouse and delivery company | Ordinary transit, purpose of storage and final delivery | Identify any transition into non-transit storage |
| Cause review | Police, port, shipping line and local agent | War, riot, strike, terrorism or political motive | Do not classify the peril from the casualty label alone |
| Capture or detention | Shipping line, authority and insurer | Actor, legal basis, military background and cargo condition | Distinguish administrative or sanctions detention from War risk |
| Strike | Port, warehouse and local agent | Labour shortage versus direct physical cargo damage | Analyse Clause 3.7 separately from Clause 1 |
| Route change | Shipping line, insurer and insurance intermediary | New route, new ports, notice requirements and premium | Give prompt written notice |
| Sanctions review | Shipper, insurer and legal personnel | Territories, parties, vessel, cargo and Sanctions Clause | Escalate separately from the War-risk analysis |
| Damage assessment | Cargo owner, warehouse and surveyor | Physical damage, quantum and causation | Preserve evidence before repair or disposal |
| Third-party recovery | Contracting Carrier, Actual Carrier and warehouse | Responsibility stage, Claim Notice and limitation periods | Preserve rights without waiting for the insurance decision |
| Legal dispute | Insurer and maritime lawyer | Peril classification, causation, governing law, sanctions and liability | Reserve rights and obtain specialist advice |
Loss Mitigation and Preservation of Third-Party Rights
Under both Institute War Clauses and Institute Strikes Clauses, the Assured and its employees and agents are required to take reasonable measures to avert or minimise recoverable loss and to preserve and exercise rights against carriers, bailees and other third parties.
For example, after a riot damages part of a port warehouse, remaining cargo may need to be moved to a safer location and protected against secondary fire, water or weather damage.
At the same time, immediate disposal, repair or relocation may destroy evidence concerning the actor, cause, extent of damage or carrier responsibility. Subject to overriding safety requirements, photographs, video, surveys, official reports and samples should be preserved where practicable.
Insurance recovery under War or Strikes clauses is also separate from claims against the Contracting Carrier, Actual Carrier, warehouse operator, terminal operator or other third parties. Claim Notice requirements and litigation time limits should be preserved without waiting for the insurer's final decision.
When to Involve an Insurer, Insurance Intermediary or Maritime Lawyer
Routine placement questions and casualty notifications will normally be handled with the insurer or insurance intermediary. Specialist maritime or related legal advice should be considered where:
- it is disputed whether the event falls under War risks, Strikes risks or ordinary ICC;
- the legal basis of capture, seizure or detention and its relationship with War Clause 1.2 is disputed;
- terrorism or political, ideological or religious motive is disputed;
- War-specific duration or the 15-day rule is material;
- continuation or reattachment at an intermediate, refuge or substituted port is disputed;
- notification of a route change, additional premium or revised underwriting terms is disputed;
- a sanctions provision may prevent the provision of insurance or payment of a claim;
- insurance non-payment and liability of the Contracting Carrier or Actual Carrier are disputed simultaneously;
- foreign official, police or other evidence must be secured urgently;
- a high-value claim involves multiple insurers or co-insurers; or
- insurance, carrier-notice or litigation time limits are approaching.
Common Misunderstandings
| Misunderstanding | Actual Practice | Practical Caution |
|---|---|---|
| ICC(A) automatically includes War and Strikes risks | Those risks are excluded under ordinary ICC Clauses 6 and 7 and require separate review. | Check ICC and War or Strikes cover separately. |
| Adding War cover means war risks are insured from the factory to final delivery | Standard Institute War Clauses (Cargo) have their own duration rules. | Confirm vessel loading, discharge and intermediate-port periods. |
| Any detention of a vessel or cargo is automatically a War claim | Clause 1.2 requires analysis of the relationship with the Clause 1.1 war risks. | Identify the reason and legal basis for detention. |
| If a port is closed by a strike, every resulting loss is insured under Strikes cover | Loss from labour shortage and delay raises separate exclusions. | Identify whether direct physical cargo damage occurred. |
| Lost sales caused by strike delay are covered | Both War and Strikes wordings generally exclude loss caused by delay. | Separate physical loss from economic loss. |
| Every terrorist act is a War risk | Specified terrorism and motivated acts are addressed under Institute Strikes Clauses. | Review cause, actor, motive and actual wording. |
| A sanctions-related destination is simply a War-risk issue | Sanctions are a separate underwriting and payment-restriction issue. | Review applicable Sanctions wording separately. |
| War cover guarantees insurance availability for any high-risk area | Rates, terms or underwriting availability may vary with the route and circumstances. | Refer the shipment before loading. |
| A route change made by the shipping line never needs to be reported | Change-of-voyage and deviation provisions may require prompt notice or revised terms. | Notify the insurance side when the change becomes known. |
| If War or Strikes insurance does not respond, the carrier cannot be liable | Cargo insurance and carrier liability are separate questions. | Preserve third-party notice and litigation periods. |
Practical Points
Practical analysis of War and Strikes risks requires more than checking whether the policy contains the words “War” and “Strikes.”
The first step is to determine what ordinary ICC excludes and what separate Institute Clauses have been incorporated. The next steps are to classify the cause under the relevant Clause 1 wording and then review duration, exclusions, route changes and other policy conditions.
The duration of Institute War Clauses (Cargo) is particularly important because it does not simply follow the Warehouse-to-Warehouse structure associated with ordinary cargo insurance and Institute Strikes Clauses. Vessel loading, final discharge, the 15-day provisions and intermediate or refuge ports may all be material.
The existence of conflict, riot or a strike also does not itself establish an insured loss. The analysis must identify what happened to the cargo and whose conduct caused the physical loss.
Sanctions should be analysed separately from War-risk coverage. Where a high-risk region, trading party or route change is involved, the insurer or insurance intermediary should be consulted as early as practicable.
Summary
War Risks and Strikes Risks are important categories of marine cargo insurance that supplement risks excluded under ordinary ICC(A), ICC(B) and ICC(C) through separate Institute War Clauses and Institute Strikes Clauses.
Institute War Clauses (Cargo) address specified war, civil war, revolution, rebellion and hostile acts, certain capture or detention arising from those risks, and derelict weapons of war. Institute Strikes Clauses (Cargo) address acts of strikers and participants in riots or civil commotions, specified terrorism and acts motivated by political, ideological or religious purposes.
The two sets of clauses differ not only in the risks insured but also materially in duration. Standard Institute War Clauses (Cargo) do not use the same Warehouse-to-Warehouse duration structure as ordinary cargo insurance.
Even where War or Strikes cover is attached, delay, shortage of labour, frustration of the voyage and other excluded losses are not automatically insured. Cause, physical damage, duration and exclusions must still be reviewed.
Sanctions, high-risk routes and changes of destination may also create underwriting or claim-payment issues separate from the insured War or Strikes peril.
In practice, the complete insurance wording, cause of casualty, route, loading and discharge dates, regional circumstances, official evidence, physical cargo damage and third-party liability should be organised promptly, with early escalation to the insurer, insurance intermediary or specialist maritime lawyer where appropriate.
