The Supreme Court recently confirmed several important starting points relevant to the periodisation of an insurance event for the assessment of cover. The ruling addressed issues relating to both defining insurance periods and determining when insurance events occur. The Supreme Court also addressed the question of what is required to revise an insurance agreement pursuant to Section 36 of the Contract Act on unreasonable contract terms.
In marine insurance, business interruption is covered by loss of hire (LoH) insurance. LoH is a separate insurance for loss of time caused by a casualty and linked to the hull and machinery insurance for the insured vessel or unit when it covers repair costs. The COVID-19 pandemic and the restrictions imposed will not be considered a 'casualty' for an insured vessel or unit. However, for marine casualties caused by other perils, it is clear that COVID-19 has led and will lead to significant prolongations of repair periods.