What covers the risk of war insurance. Specialist explanations


War risk insurance. What it means, what it covers. The explanations of a specialist

The war in Ukraine has turned our lives upside down and brutally thrown us into an absurd scenario, which has only just begun and is being written on the way to an unknown end. You think about your own life, about the agonized goods and you wonder what an insurance company can offer you for situations that go beyond the normal pattern. Gheorghe Grad, Country Manager at RENOMIA SRBA Insurance Broker, spoke to DCBusiness about war risk insurance.

What is the risk of war insurance?

War risk insurance is possible and common in the market for a number of forms of insurance such as: cargo insurance in international freight, aviation and maritime insurance for the carriage of goods and persons or trade credit insurance for the risk of non-collection. trade receivables on the export of goods. All these types of insurance have a specific characteristic, namely that the insured goods (aircraft, ships, goods) move over vast territories from one country to another and thus are always subject to the risk of being “caught” in the middle of an armed conflict. in its incipient phase and implicitly are damaged or even destroyed. The war risk coverage clause includes other similar risks such as political risks, nationalization, seizure, expropriation, confiscation, etc. and has global coverage, except for states or territories where the conflict is ongoing.

What happens if a conflict becomes notorious?

Once the military conflict has become notorious in a particular country or region, the insurer shall notify the insured in writing of the extension of the exclusion zone in those territories. This procedure is a natural one, because one is to go to a destination country where there is peace and when you get there there is already war and another is to send the ship on the voyage after the war has broken out and is in full swing.

What are the forms of insurance in which the risk of war is excluded?

The risk of war is excluded from insurance contracts not only in Romania, but all over the world. Basically, the insurers will not compensate the damages caused directly or indirectly by the war, but only those mentioned in the contract. The main forms of insurance held by customers in Romania that exclude the risk of war are life insurance, health insurance, property insurance, whether they are houses, office buildings, factories and factories or CASCO car insurance.

Read the full article on DCBusiness

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