Overview
Day 1: Standalone Terrorism & Sabotage Insurance (T&S) & Indian Pool Mechanics
Policy Architecture & Key Wordings:
Examination of the standard LMA 3030 insuring clause: Defining “Act of Terrorism” and “Act of Sabotage”.
Core policy conditions: The 72-Hour Occurrence Clause, location-specific policies, valuation bases, condition of average, and primary vs. excess triggers.
Critical exclusions: Nuclear, chemical, biological, and radiological (CBRN), cyber terrorism, public authority actions, utilities disruption, and looting/burglary.
Business Interruption (BI) Extensions:
Decoding LMA 5150: Gross earnings reduction, indemnity periods (UK vs. US practices), and key exclusions (labor interference, lease/contract cancellations).
Indian Market vs. Global Pools:
Indian Terrorism Damage Inclusion/Exclusion wordings.
Understanding government/military action coverages: Why suppression costs are treated differently under Indian pool wordings vs. standard international forms.
The role and structure of IFTRIP, pool capacities, and excess of loss reinsurance protections.
Landmark Case Studies:
Taj Mahal Palace Hotel (26/11 Mumbai Attacks): Material damage, suppression-related damage by authorities, and BI recovery realities.
World Trade Center (9/11): The “one event vs. two events” legal battle, broker forms vs. insurer forms, and aggregate loss implications.
Day 2: Political Violence (PV) Insurance & Conflict Boundaries
The Spectrum of Violence:
The escalation continuum: How public assemblies morph from Riots, Strikes, and Civil Commotion (RSCC) into Insurrection, Rebellion, Mutiny, and Coup d’état (e.g., Tahrir Square, Arab Spring).
Precise contractual definitions of War, Civil War, Insurrection, Malicious Damage, and Sabotage.
Property Damage & Asset Coverage Under PV:
Coverage triggers for physical assets, forced abandonment, and mobile equipment.
Common property exclusions and write-back options (transmission lines, pipelines, unoccupied properties, offshore assets).
Underwriting & Disclosure:
Accumulation control and proximity underwriting: Identifying high-risk exposures within 500 meters (embassies, landmarks, military/police bases, transport hubs).
Utmost good faith, material fact disclosures, and broker misrepresentation risks.
Real-World Claims Analysis:
Central World, Bangkok (2010): Clashes between Red Shirts/Yellow Shirts, arson, and the jurisdictional conflict between IAR policies and PV covers under “Other Insurance” conditions.
South Sudan & Eastern Ukraine: Looting, government/rebel force seizures, and fighting under combat conditions.
Day 3: Interlocking Coverages & Executive Introduction to Political Risk Insurance (PRI)
Structuring T&S vs. PV vs. Property (IAR):
Eliminating coverage gaps between traditional Property Damage/IAR, Standalone Terrorism, and Political Violence covers.
Addressing dual-policy disputes, other-insurance clauses, and burden of proof considerations.
Introduction to Political Risk Insurance (PRI):
Purpose and scope: Safeguarding Cross-Border Foreign Direct Investment (FDI), equity, shareholder loans, and overseas assets against sovereign/host-government interference.
Overview of core PRI perils:
Expropriation & Deprivation: Confiscation, nationalization, and selective discrimination (CEND).
Currency Inconvertibility & Non-Transfer: Protections against foreign exchange restrictions and dividend repatriation blocks.
Arbitration Award Default & Breach of Contract: Mitigating sovereign default on contracts and concession agreements.
Forced Abandonment & Forced Divestiture: Evacuations and regulatory sanctions.
Comparative Legal Doctrines:
Subrogation vs. Assignment of rights in sovereign and geopolitical claim recoveries.
