By a decision arrived at after prolonged study of present conditions, the Institute of London Underwriters has now decided to exclude all war risks in lighters and on shore throughout the world. Cover granted under a marine contract is now to be limited either until "such interest is discharged" from the ship or after fifteen days from the ship's anchoring at the final port of discharge, it was learned yesterday.
Notice to this effect was issued to the press in the British Isles on December 23, 1937, in the following terms:—
"Marine underwriters, after a prolonged study of the situation, have decided that under modern conditions of warfare such widespread destruction of property is possible that the accumulated cargo values at certain ports would create liabilities which even the whole marine insurance market might well be unable to meet.
"In this connection it will be recalled that non-marine underwriters have already ceased to grant war risks cover on shore, and marine underwriters now propose to limit the cover granted under a marine contract to the period from the time the interest is loaded on board the oversea vessel until such interest is discharged overside from the oversea vessel or until.the expiry of 15 days from midnight of the day on which Such vessel is safely anchored or moored at the final port of discharge whichever shall first occur. The agreement is to be made applicable to sailings on and after February 1, 1938, and in order to bring the agreement into force the necessary war cancellation notice is being given as from to-day's date under all insurance contracts, it being understood, however, that in respect of Sales Contracts entered into prior to December 23, 1937, permission may be given in such circumstances to grant the existing war risk cover for sailings up to and including March 31, 1938.
"The agreement come to by marine underwriters will apply to original and reinsurance contracts irrespective of nationality."
Text read from the printed page and cleaned; old type leaves the occasional error.