Section 5-2: Termination of the insurance

Clause 18-63. War between the major powers

In the event of war or war-like conditions breaking out between any of the following States:
The United Kingdom, the United States of America, France, the Russian Federation, the People’s Republic of China, the insurance against war perils shall automatically terminate.

Clause 18-64. Use of nuclear arms for war purposes

In the event of any use of nuclear arms for war purposes, the insurance shall automatically terminate.

Clause 18-65. Bareboat chartering

If the MOU is bareboat chartered, the insurance shall automatically terminate.

Clause 18-66. Cancellation

In the event of a change of risk, the person effecting the insurance as well as the insurer are entitled to cancel the insurance of war risks by giving seven days’ notice, but where the circumstances involve one of the States in Cl. 18-63, the notice shall be 72 hours.

The notice period shall commence one workday, at the place of the head office of the claims leader, from midnight on the day of issue. The insurer shall immediately notify the mortgagee of the cancellation.

If the notice of cancellation is given for the sole purpose of amending the Listed areas in Cl. 18-67, the war risks insurance will be automatically reinstated upon expiry of the notice period with the Listed areas being amended in line with the changes outlined in the notice.