Skuld issues cancellation notice over several war risks

Skuld issues cancellation notice over several war risks | Insurance Business Australia

Reinsurance

Skuld issues cancellation notice over several war risks

It comes as a response to a similar notice issued by the association’s reinsurers

Reinsurance

By
Kenneth Araullo

Skuld has announced the issuance of a notice of cancelation to its fixed premium assureds regarding certain war risks currently reinsured in the commercial market.

The decision comes in response to a notice of cancelation received by the association from its reinsurers concerning these war risks. As a result, the association said that it is compelled to issue a similar notice to its members, affecting various coverages including fixed P&I, charterers, offshore, yachts, yacht crew liability, and optional covers extended to encompass war risks.

The cancelation is in line with specific clauses within the terms and conditions of the policies held by the assureds.

Effective immediately, with a notice period extending beyond 72 hours, the war risk cover will cease February 20, 2024. This termination will apply to assureds operating or located within the territorial waters of specified regions, including the Indian Ocean, Gulf of Aden, and Southern Red Sea, detailed by geographical boundaries.

Skuld’s notice of cancelation will also affect all individuals or entities listed as assureds and/or co-assureds on the P&I certificate(s) of insurance or cover note(s), with specific amendments for policies considered reinsurance.

This action overrides any other agreements related to war risks in the individual certificates of insurance or confirmations of cover. However, the association also noted that this cancelation solely impacts war risk cover, with all other coverage terms remaining intact. The notice also does not alter any current restrictions or exclusions under the policies for other areas.

Mutual P&I, war, and FD&D cover, as well as the excess war risks cover provided to assureds with mutual P&I cover, are not affected by this notice.

The association is currently finalizing the details for a buy-back option to reinstate the cover and advises members to contact their Skuld underwriter for more information.

What are your thoughts on this story? Please feel free to share your comments below.