War Risk Insurance: Definition, Policy, Act (Explained)

War Risk Insurance: Definition, Policy, Act (Explained)

Definition of War Insurance

War insurance policy specifies the coverage exclusion of acts of war such as invasion, insurrection, revolution, military coup and terrorism.

The study under the property insurance shall not be complete until the discussion is made with regard to war risk insurance since war is a peril, which substantially causes damages to properties of various descriptions.

The commonly practiced convention throughout the world is this that in so far as marine insurance is concerned very little restriction is there in providing war cover.


We see that such cover is being provided for both hull and cargo on demand against payment of additional premium.

Such risks are also covered in life insurance even without payment of any extra premium.


As a rule, insurers all over the world do not provide any war cover in respect of any property situated on land and, therefore, we see the exclusion of such covers on policies of fire and accident departments.

A common exclusion clause reads as follows:

The company shall not be liable under this policy in respect of loss, damage or destruction caused by war, invasion, hostilities, the act of foreign enemy, civil war, rebellion, revolution, insurrection, military or usurped power.

War Risk Insurance Act

War Risk Insurance Act was a piece of legislation passed by the United States Congress in 1914

During World War I, this act ensured that war risk insurance for shipping vessels and individuals was available.

It established a Bureau of War Risk Insurance within the Treasury Department to provide insurance policies and pay claims for war insurance.

In 1917, the War Risk Insurance Act of 1917 amended the insurance program to make life insurance coverage available to sailors in the United States Merchant Marine.

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