ABSTRACT
This chapter considers the arrangements between the United Kingdom government and the insurance industry for State support for the marine (and aviation) war risks market in the event of the outbreak of war. Immediately before the First World War, His Majesty’s Government desired that the loss of or damage to merchant ships should be dealt with on insurance principles. The exercise of the Royal Prerogative to requisition British ships carries with it the obligation to pay for their use, and to make good or pay for damage which they suffer whilst they are compulsorily in her service. If the entered ship is captured, seized, arrested, restrained or detained then: This detention cover is subject to the same limitations as the cover which applies to insured perils for non-Queen’s Enemy Risk cover. The Secretary of State gives reinsurance for British ships and such other ships as he is prepared to accept for reinsurance in wartime only.
