The study under the property insurance shall not be complete until 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 are 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 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, act of foreign enemy, civil war, rebellion, revolution, insurrection, military or usurped power.