Millers Marine War Risks
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CHAPTER 31
War risk insurance in time of war
Note for the Fourth Edition
This chapter considers the arrangements between the United Kingdom government and the insurance industry for State support for the marine (and aviation) war risks market in the event of the outbreak of war. The Act of Parliament under which this operates (the Marine and Aviation Insurance (War Risks) Act 1952) and the 1988 Reinsurance agreements remain in place.1 What follows is the expert analysis provided by Michael Miller in the previous edition. He begins by explaining the lack of progress in bringing about much needed reforms since the Second Edition in 1994.Note from the previous author
There was great concern in 1913 that British merchant ships would be attacked by the powerful German High Seas Fleet. There was equal concern in 1939 that they would be similarly attacked by the large German U-Boat fleet, and during the Cold War (1950 to 1995–2000) that they would be subject to the attentions of the very powerful navy of the USSR. There was always the danger that the Cold War would become “hot” and result in actual hostilities between NATO and the Warsaw Pact countries. Now that the Cold War is over there is no powerful navy left in the world which might be expected to attack British merchant ships, and the question arises if it is any longer necessary to have a form of contract with Her Majesty’s Government whereby the Secretary of State can bring the non-Queen’s Enemy Risks insurance to an end by issuing a General Premium Notice and so substituting for it the Queen’s Enemy Risks insurance. Unquestionably Her Majesty’s Government will require British (and perhaps foreign) ships in support of such military operations as it undertakes and will either have to give them insurance or pay for the insurance which they themselves effect. The South Atlantic War (1982) to eject Argentina from the Falkland Islands is the example which springs to mind, and nobody can say whether or not there will be others. It is only prudent to have an insurance scheme in place which is ready for instant use, but it will be very different from that which presently exists. The publication of the Third Edition cannot wait until this is in place and much work will have to be done before it is. It may be helpful to have aPage 271
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War Risks means risks arising from any of the following events that is to say, hostilities, rebellion, revolution and civil war, from civil strife consequent on the happening of any of those events, or from action taken (whether before or after the outbreak of any hostilities, rebellion, revolution or civil war) for repelling an imagined attack or preventing or hindering the carrying out of any attack, and includes piracy.