Getting insurance semantics right

A SUBTLE difference between "political" and other "riots" in marine underwriters' jargon put FTW on the wrong track in last week's Zimbabwe insurance story. But John Hill, m.d. of Associated Marine, quickly rushed to our aid, clutching his insurance dictionary. Cover for "political riot" differs greatly from that of the similar sounding "strikes, riot and civil commotion" cover, he told FTW. The insurance that has already been suspended for Zimbabwe - with a number of major re-insurers refusing their services last year - is the "political" one of the two riots, according to Susan Bester of Prestmarine. Quite right, Hill added. But, semantics apart, he said, there might - under certain circumstances - soon be little difference between the two. "It is quite feasible - given the political upheavals of the moment - that it might become impossible to get ordinary strikes, riot and civil commotion cover as well," said Hill. "The risks are just getting too high."