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War in Yemen causing cargo to be diverted. Are expenses incurred recoverable under ICC A?

If cargo is to be diverted to another port due to a war breaking out at the intended destination, then can the insured claim the storage expenses incurred at the intermediate port from cargo insurers under an all risks policy?

Here a cargo of 30 containers was insured on ICC A, an all risks policy, for a voyage from India to Yemen. After the bill of lading was issued and vessel commenced its voyage, the Port of Aden and all other ports in Yemen were closed due to war. Vessel diverted to Saudi Arabia and cargo was stored there for a few months before being sent to Yemen. Insured was claiming the storage costs incurred ($100k) at the intermediate port from the cargo insurers. Insurers refused saying such expenses were not covered as per the war exclusion clause.


As per the dispute redressal commission the cargo was stored at the intermediate port solely because of the war in Yemen. The storage costs incurred fell within the term ‘expenses’ which was expressly excluded under both the ‘war’ and the ‘delay’ clause. However, storage of cargo at Saudi Arabia was considered as ‘effective and reasonable steps’ taken to protect the cargo. Such was covered by the policy. Insurers were therefore directed to honour the claim for storage costs.





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