Method Of Policies Protections For Insurers - Part I 3089635636924505613-blid-1606184677256000104

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Even if the war exclusion is widely drafted it is impossible for the insurer to guarantee that a claim that it considers is caused by a war or associated peril is in fact excluded from cover. A factor which is often overlooked in drafting policies is the importance of the jurisdiction and choice of law clause. Frequently, as part of the negotiations to which any insurance policy is subject, the underwriter may either agree to a local jurisdiction and proper law clause or, alternatively, fail to deal with the issue. This may result in any other protection included in the policy being entirely worthless. It must be clear that if a claim is to be litigated possibly in the country where the war or civil war has occurred, it is unlikely that the insurer will obtain a favourable verdict if it attempts to rely upon the war exclusion clause.