War Risks - Duration of Cover
Cover is provided primarily whilst the goods are waterborne. Cover does not apply whilst the goods are on land except whilst being transshipped at an intermediate port. This is because of the unacceptable accumulation risk and the difficulty for the insurers in determining their exposure to static risks.
The transit clause therefore restricts cover to the time when cargo is waterborne whether in a ship or craft. There is a time limit imposed of 15 days from the time of arrival of the vessel at the destination port.
War Risks - Transit Clause (See clause 5)
The following table gives a very brief summary of the transit clause, which should be read in full by all policyholders particularly those concerned that their goods are exposed to potential war risks.
| Overland from shipper to port | No cover |
| Prior to loading at the loading port | No cover |
| Onboard the craft (lighter) | Cover restricted to mines and torpedoes only |
| Onboard the overseas vessel | Full War Cover |
| At Intermediate Transshipment Port | Cover subject to time and location restrictions |
| Onboard Second overseas vessel | Full War Cover |
| After discharge at Destination Port | No Cover |
| Overland to consignee | No Cover |
Definitions
"Arrival" - means the vessel is anchored, moored or otherwise at a berth or place within the harbour authority area if such a berth is not available.
"Overseas vessel" - means the vessel carrying the goods from one port to another where the voyage involves a sea crossing.
Note
Although the premium charged relates to the risk envisaged at a time when major hostilities are not present, there is no provision in the war clauses whereby the underwriter may cancel the cover once transit has commenced.