LP 06/2022 The Russia-Ukraine Crisis and War Risks Cover

With regard to the very fluid situation in Ukraine, how war risks cover works at the moment is explained.

The situation in Ukraine is changing every minute and impossible to predict with accuracy, but there is clearly a possibility that escalation of the conflict may impact on vessels navigating in the Black Sea and the Sea of Azov. Following the Association’s circular dated 18th February, 2022 updating on war risk listed area, Members are recommended to pay attention to the following:

Updates on the armed conflict in Ukraine

The ongoing military action is fast moving and unpredictable, but is impacting on port operations in the Black Sea area such as Odessa where explosions have been reported. It is reported that local authorities have closed entrances to the port of Odessa and cargo operations might be suspended until further notice. Vessels may also face navigational challenges as the rest of Black Sea and Eastern Ukraine areas remain dangerous sea areas and under armed force control. Therefore, the Association strongly suggest members to contact your local agents for latest advice if you have a vessel calling to Ukraine.

Insurance cover

Regarding Members’ query on how war risks cover operates in the current situation in Ukraine, the Association would refer you to LP 31/2019 More About War Risks Insurance: Listed Areas, Terms of Cover and Additional Premium which provides general guidance on War Risks Cover, additional premium and navigational operations in high risk listed areas.

In recent Circular To War Risks Members-JWC-028, the Association advised that Joint War Committee has published JWC Hull War, Piracy, Terrorism and Related Perils Listed Areas 15 February 2022 (JWLA-028). The Association would like to draw your attention that current war risks cover policy would be terminated at 23:59 on 26th February 2022 (Greenwich time) and reinstated at 00:00 27th February 2022 (Greenwich time) with JWLA-027 to be replaced by JWLA-28 unless further notice. Special attention is required for held cover and additional premium quotation for vessel entering into Ukrainian and Russian waters in the Black Sea and the Sea of Azov subject to 24/7, which means the underwriter is entitled to change additional premium or revise cover terms if the vessel fails to enter into subject waters within 24 hours after the quotation. Please see more details in the Member Circular No.2 [2022].