ABSTRACT

“Confiscation” and “expropriation” were not insured perils under the S.G. Form, but were introduced in the early 1980s when the new Institute Time Clauses were introduced with the MAR Form. They are found in the Clauses for Hulls, Freight and Containers, but are not insured perils in the Cargo clauses. There is no authority on the meaning of confiscation or expropriation, though vessels have been confiscated on account of smuggling in the Anita, the B Atlantic, and (subject to release by payment) in Cory v. Burr. The ordinary meaning of confiscation is where the state appropriates property on the grounds of illegality. Expropriation is dealt with in international law, and refers to the appropriation of foreign-owned property by the State for political purposes.