REGULATORY · MARKET STRUCTURE · COMPETITIVE · GLOBAL
GIC Re withdraws Marine Hull War Risk cover in designated high-risk zones
Change
On March 1, GIC Re amended its Marine Hull War Risk scheme to cease providing marine hull war risk cover in specified high-risk zones effective 7 pm India time on March 3.
Why Now
GIC Re amended its Marine Hull War Risk scheme to withdraw cover in several high-risk regions from early March. The reinsurer stated the changes took effect from 7 pm India time Sunday, and it will cease providing Marine Hull War risk cover in the specified zones from 7 pm on March 3. The revised High Risk Areas listed include Pakistan waters; the Persian/Arabian Gulf and adjacent waters and ports (including the Gulf of Oman); Iran and other countries under UN/UK/US/EU sanctions; the Sea of Azov and defined parts of the Black Sea; waters of Ukraine, Russia, and Belarus; and parts of the Indian Ocean including the Gulf of Aden and Southern Red Sea. GIC Re also stated that Breach of Warranty cover will not be available for any of these zones where a vessel passes through, calls at a port, or is dry-docked. The notice affects only War Risks cover and amendments become binding automatically if no objection is raised.
Impact
- • War Risks cover from GIC Re ends after the cut-off time for vessels operating in the specified High Risk Areas.
- • Breach of Warranty cover is unavailable for transits, port calls, or dry-docking in the listed zones.
- • The amendment is binding automatically if no objection is raised, per the scheme terms described.
Who Recalculates
- • Ship owners and operators on international routes
- • Marine insurers and reinsurers
- • Shipping companies transiting designated high-risk waters
Source
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