A doubt often raised by many is whether Terrorism stands covered under a policy issued on ICC-A terms. The answer is NO.
Terrorism forms part of the Strikes group of perils which is an exclusion under ICC. In practice this exclusion gets negated by addition of the Institute Strikes Clauses to the policy, so much so that this has become routine and I have not come across any policies on ICC terms and without the Institute Strikes clauses.
Again,even with the addition, is Terrorism covered without any limitation? Answer is found in the Termination of Transit clause (Terrorism) which is a ‘ clause paramount’. This clause states that Terrorism is covered as per the Duration clause attached to the insuring clauses ( not necessarily ICC, could be others like American, German, etc) forming part of the policy. This means Terrorism is covered ONLY when the cargo is in the “ ordinary course of transit”. Assuming a policy on ICC-A terms is written on multi- transit basis with coverage for intentional storage too, Terrorism cover WILL NOT be available when the cargo is under intentional storage.
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Sir, If there is storage in ordinary course of transit than too terrorism is covered ——- hope my interpretation is correct
We do not call it as ‘ storage’. When the cargo is static during ordinary course of transit, terrorism is covered BUT not under ICC-A, only if the Institute Strikes clauses are attached to the policy
Thanks sir
I Think as long as the Storage is by the bailee, shipper, forwarding agent etc. during the ordinary course of transit on which teh Assured does not have any control, it is covered