Japan Club will not apply WHO exclusion clause to FD&D cover

Japan Club has said that it will not be applying a WHO exclusion clause to its Freight, Demurrage and Defence (FD&D) cover

In recent circulars detailing the t’s & c’s for policies in the policy tear 2022-23, Japan Club noted that the “WHO Communicable Disease Exclusion Clause” would form part of the contract for all insurance entries other than mutual entries. However, it has now decided that this Exclusion Clause will not be applied to Special Cover for Freight, Demurrage and Defence (FD&D), in other words, the coverage under FD&D will remain unchanged.

The “WHO Communicable Disease Exclusion Clause” replaces the existing Coronavirus Exclusion Clause. The WHO Communicable Disease Exclusion Clause excludes cover for costs and expenses directly arising from the transmission of any communicable disease declared as a Public Health Emergency of International Concern (PHEIC) by the World Health Organization (WHO) or from any fear or threat of such communicable disease, expenses related to quarantine, and other economic losses, etc.

The exclusion applies from the time the WHO declares that an outbreak of a communicable disease is a PHEIC, and will remain in effect even if the WHO rescinds, reverses, or otherwise nullifies its PHEIC declaration. At the moment, therefore, the exclusion applies in respect of the following six communicable diseases: Swine flu (2009), Polio (2014), Ebola (2014), Zika virus (2016), Ebola (2019) and Covid-19 (2020).