Page 16 - Insurance Times May 2020

discharge at some other port, does the insurance the control of the assured, and either the contract of
policy continue to cover? carriage is terminated at a port or place other than the
destination named therein or the transit is otherwise
terminated before unloading of the subject-matter insured
as provided for in Duration clause, then this insurance shall
also terminate.

Note: Or, unless otherwise specially agreed, until the
1. Considering the current unprecedented event expiry of 60 days after arrival of the subject-matter
triggering the above situations is advisable to approach insured at such port or place, whichever shall first?
the insurers requesting for the extension of the covert Occur, or
till normalcy prevails. Extension of the period mentioned
9.2 If the subject-matter insured is forwarded within
under duration clause, if agreed to by insurers can help the said period of 60 Days (or any agreed extension
in the continuity of cover under situations 2, 3 and 4. thereof) to the destination named in the Contract

2. All the views expressed above are based and assumed of insurance or to any other destination, until
on the coverage, condition and exclusions of ICC-A and terminated in Accordance with the provisions of
ITC - A clauses, version 2009 and 2010 respectively. Duration clause.
3. Quick review of the per location limit, based on the
transits which are en route to final destination, will help COVID 19 and its impact on Liability
the corporate analyse if the per location limit under the Insurance:
policies are adequate. A referral to the insurers always
Corporate are currently worried about the liability suits
helps. It is also possible that in certain cases the insurers
being filed against the directors and officers for situations
might have to take the concurrence of the reinsurers.
driven by the outbreak of the COVID19, globally. Though it
4. In situation number 7, the assured should immediately may sound strange, yet there could be situations which can
bring it to the notice of the insurer, and subject to the result in such cases being file and in some cases it could also
discretion of the underwriter, the continuation of the lead to class action suites. The following paragraphs would
coverage may be agreed as per clause 9.1 and 9.2 , on analyse the situations that can give rise to legal suits being
payment of additional premium till: filed against the directors and officers:
9.1 subject-matter insured is sold and delivered at such
port or place, Director's and Officers Liability policy

(Management liability)
1. Non-disclosure of material facts : Non-disclosure of
the possible impact of the COVID 19 on the business of
the corporate , to the shareholders can spell troubles
for the Directors and officers responsible for the same
e.g. if the corporate fails to disclose the adverse impact
of the COVID 19 on the business performance and
there is a significant fall in the share prices , the
shareholders can file security class action suits against
the erring Directors .

2. False and misleading statements: In order to boost the
share prices, if any company issues false and misleading
statements, this can lead to subsequent suits being filed
against the Directors taking such decisions. Two such
cases have been filed in US and similar cases are

16 The Insurance Times, May 2020