The outbreak of war substantially increases the level of risk borne by insurers. As a result, insurers may adjust premiums unilaterally, seek additional contributions from policyholders, or withdraw from the insurance contract altogether, a partner at NAVICUS.LAW noted in remarks to the prominent Russian legal media Pravo.ru. Konstantin Putrya considers this to be the key risk facing shipowners.
“Beyond that, carriers remain well protected under maritime law, which has traditionally favoured the interests of shipowners,” the lawyer notes. In particular, the Hague-Visby Rules provide that carriers shall not be liable for loss or damage arising out of acts of war, perils or accidents of the sea, force majeure, delays in cargo delivery, arrest, or analogous events.
In the short term, the burden of losses will largely be borne by cargo owners and charterers, rather than shipowners, save where insurance coverage issues arise. Even so, such risks will, in economic terms, be reflected in freight rates, Konstantin Putrya concludes.
To read Konstantin Putrya’s full commentary, see the article at the following link — https://pravo.ru/story/262813/.
