Riots and Civil Commotions Cover

The recent events of September 11th, have left everyone in disbelief and shock. The ramifications for family and friends are profound. The business community is also attempting to cope as best they can under the circumstances. The insurance community was and is central to this tragedy.

We advise that both the London market and the U. S. market have already begun to take steps to address the increased exposure under the War, Strikes, Riots and Civil Commotion coverage afforded under most cargo policies.

War, Strikes, Riots and Civil Commotion Coverage

We intend to charge additional premiums on all War, S. R. C. C. exposures to or from all non held-covered waters and/or territories under our current Cargo policies. These additional charges will apply to all shipments commencing on or after November 1, 2001. After carefully examining both the London market approach as well as the U. S. approach with regards to these additional premiums, we have elected to follow a format that more closely resembles the U. S. approach and we trust you agree that this approach will better suit your clients' interests. As always, we at Atlantic Marine Underwriters remain open to considering any extraordinary situations which may exist that require special consideration and we would urge you to contact us in regards to these special situations in order that we may address them individually. Please bear in mind that as regards risks either to or from held covered waters or territories, the premium in respect of War, S. R. C. C. coverage is subject to application.

Held-Covered Territories

The following territories are currently considered held-covered territories and you should be aware that the premium applicable to the risks of War, S. R. C. C. is available only on application to underwriters and could, in certain circumstances, be quite significant. The current held-covered territories are Afghanistan, Republic of Chechnya, Democratic republic of Congo, Eritrea, Iraq, Israel and Palestinian Authority, Macedonia, Nigeria, Sierra Leone, Sri Lanka, Tajikistan, Pakistan and Zimbabwe. Please bear in mind that this list of held-covered territories is very dynamic and therefore subject to change at all times. If you are uncertain, please contact us as to the status of any territory.

Additional Premiums

Effective on all shipments to or from all non held-covered territories commencing on or after November 1, 2001, the following additional premiums will apply to risks covering War, Strikes, Riots and Civil Commotion:

Shipments by Sea 0.01% in addition to current War, S. R. C. C. rates

Shipments by Air 0.02% in addition to current War, S. R. C. C. rates

Application of the Additional Premiums

As Cargo policies can take several different formats as regards the risks of War, Strikes, Riots and Civil Commotion, we have listed below the approach to be taken dependent on the format of the Cargo policy:

Policies with inclusive rates

Where the policy contains rates that are inclusive of War, S. R. C. C. coverage, the additional premium rates are to be added to the respective inclusive Sea and Air rates.

Policies with Separate War, S. R. C. C. rates

Where the policy contains separate War, S. R. C. C. rates, these rates should be increased by 0.01% for Sea Shipments and 0.02% for Air shipments.

We recognize that there may be certain policies that contain rates outside of these parameters, and we will address these policies on an individual basis.

Issuance of Endorsements to reflect rate changes

Shortly, we will proceed to issue formal endorsements to all of our cargo policies incorporating the changes to the War, S. R. C. C. rates with effect from November 1, 2001. If there are special cases that need to be addressed, or in the event you would like to make further queries as to these changes, please feel free to contact us and we would be pleased to answer any questions, which you may have.

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