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Al-Masry Insurance: The outbreak of the Russian-Ukrainian war

علاء الزهيري Alaa Al-Zuhairi

The Egyptian Insurance Federation confirmed that the outbreak of the Russian-Ukrainian war has direct negative effects. on the insurance markets in the world, and that the types of insurance most affected by the war are marine and aviation insurance. The Union clarified in its weekly publication issued today, entitled “The Dangers of War in Maritime Insurance,” that insurance is essentially a global industry and represents an essential part of the global economy and will certainly be affected unless the war stops.

He pointed out that the English insurance market, which is one of the largest and most important insurance markets in the world, announced immediately after the outbreak of the war that the maritime areas in Ukraine and Russia were areas Dangerous, indicating that the war means, in the language of insurance, a significant increase in marine insurance prices, especially in these marine areas. And about the susceptibility of war risks to insurance, the union said d. Marine insurance is exceptional insurance in its coverage of war risks, which are viewed as general risks, and the most important reasons for not considering war risks as among the general risks excluded in marine insurance is that these risks are not characterized by the focus that characterizes them in property insurance due to the mobile nature For ships that deny the idea of ​​accumulation in most stages of the sea voyage except for the stage of docking in the ports. 960

Regarding the impact of war on the maritime danger, the Union indicated that the state of war increases the maritime danger as well, as it makes the conditions of navigation more difficult, and insurance coverage includes war, civil war, revolution, rebellion, rebellion and civil disputes that arise from that, or any hostile act by or Against a hostile force, seizure, confiscation, arrest, suspension and prevention, and what arises from it or from attempting to carry it out, and mines, bombs, or any other abandoned weapons of war. He said that the scope of coverage of the dangers of war is limited to conventional war and does not extend to nuclear, biological, chemical or electronic warfare.

Regarding the war risk underwriting, the union said that the war risk underwriting is based on an accurate and rapid assessment of the most dangerous areas in the world, and the coverage remains in effect at terms and prices to be determined by the insurance underwriters. 960

The Joint Committee for Goods declared that the situation in Ukraine is very dangerous and rapidly developing, The Arab War Risks Insurance Fund also notified its members from companies operating in Arab insurance markets, with the exception of the Black Sea region, of covering war risks following the repercussions of the Russian war on Ukraine.