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Wednesday, October 17, 2018

WAR RISK COVER – TIME FOR PAYING VOLUNTARY INCREASES IN ANNUAL PREMIUMS IS RUNNING OUT

The air strikes against the Taliban regime in Afghanistan have brought further uncertainty to an already troubled insurance market.

It has been widely publicised that underwriters have sought voluntary increases in annual premiums for war risk cover as well as expanding greatly the trading warranties. Whilst it appears that the majority of owners have agreed to pay the voluntary increases in annual premiums there may still be some owners that have not done so. Time is running out for such owners to agree to the voluntary increases. Further delay may result in underwriters issuing a general notice of cancellation. The effect of such a notice is that cover will expire after 7 days unless the rates put forward by underwriters are agreed to. Such rates may well be substantially greater than those that the owners were being asked to pay voluntarily. Therefore we strongly advise such owners to contact their insurance brokers without delay.