MOSCOW. Feb 16 (Interfax) - The Joint War Committee covering the insurance of marine hull war risks has included in its Hull War, Piracy, Terrorism, and Related Perils Listed Areas Ukrainian and Russian waters in the Black Sea and the Sea of Azov.
Information on updates to the Listed Areas can be found in the Joint Committee Circular on the website of Lloyd's Market Association, citing Neil Roberts, the head of the Marine and Aviation division.
A source in the Russian insurance market told Interfax that this decision "was approved on February 15, in spite of the start of a detente in the political situation around Russia and Ukraine."
"The placement of new zones in the Listed Areas could last for a long time, for years, as the practice of international insurance of war risks has shown. This will require corrections in the execution of insurance coverage contracts on maritime insurance policies," the source said.
As a rule, insurance policies on war risks in maritime insurance are concluded separately from the main risks to shipowners, the source said. Moreover, hull war risks are one policy, and war protecting and indemnity risks are another. It can happen that the two policies are issued by different insurers.
The tariff for an annual hull insurance policy that covers war risks around the world is not high, in principle, and totals 0.02%-0.04% of the insured amount, the assessment of the vessel itself. At the same time, when entering waters included in the Listed Areas, insurers agree on separate terms under the contract. "In that case, everything depends on the risk assessment of the particular insurer who concluded the contract. If the insurer sees the risks as high, an additional fee can be imposed for every entry into these waters, and the fee could be high and reach 1% of the value of the vessel - that's tens of thousands of U.S. dollars," the source said.