Frequently asked Questions (FAQs)
Some typical questions Members may have are addressed below. However, if you have specific questions unanswered by the FAQs below please contact the Club secretariat Paul Knight either by phone +44 20 7204 2229 or by email firstname.lastname@example.org .
- Cover arrangements
How does this change my relationship with the Club?
The reorganisation will not affect your terms of entry, cover, or premium. You will continue to be a member of UK Bermuda, but will be insured by UK Europe. Your contacts with the Managers will be unchanged and the scope of services will be maintained and we hope improved.
Why do this? What are the advantages?
The purpose of the restructure is to reduce the number of separately regulated entities. This will help us to streamline governance, reduce compliance costs, and efficiently manage the Club’s solvency capital requirements.
What is the timescale for this reorganisation?
The target date for the completion of the reorganisation is February 2013.
Are there any disadvantages?
There are initial costs involved in this process, but these should be saved within one year through reduced on-going costs and charges.
There are no financial disadvantages. The overall amount of free reserves held by the Club before and after the reorganisation will remain the same.
Who will be my insurer after the reorganisation?
If you are insured by the UK branch of UK Bermuda, i.e. through the London office of the agents of the Managers, your insurance will be transferred to the Head Office of UK Europe.
If you are insured by the Singapore branch of UK Bermuda, your insurance will be transferred to the Singapore branch of UK Europe.
If you are insured by the Hong Kong branch of UK Bermuda, your insurance will be transferred to the Hong Kong branch of UK Europe.
If you are insured by the Japan branch of UK Bermuda, your insurance will be transferred to the Japan branch of UK Europe.
If you are currently insured by UK Europe, your insurer will remain unchanged.
Will there be any change to my insurance policy?
No, there will be no changes to your cover conditions, terms of entry, premium etc. as a result of the reorganisation. Your policy documentation will remain in place and renewals will be conducted in the usual way.
Do I need new Blue Cards?
You will receive new Blue Cards at the 2013 renewal as usual save that they will be issued by UK Europe instead of UK Bermuda.
Will I need to organise new guarantees in respect of existing claims?
No, the guarantor will be changed by operation of law from UK Bermuda to UK Europe.
Will there be any change to the Club’s reinsurance arrangements?
No, the reinsurance arrangements will be transferred by operation of law from UK Bermuda to UK Europe.
Does this reorganisation affect all Members?
Yes, the reorganisation affects all Members insured by UK Bermuda irrespective of where they are based.
Can I cancel my policy?
Yes, We have been informed by certain EEA state regulators that members who have a policy which has transferred from The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Limited to The United Kingdom Mutual Steam Ship Assurance Association (Europe) Limited under the Scheme, where the EEA state of commitment or state where the risk is situated is in Austria, Belgium, Czech Republic, Hungary, Norway, Poland and Sweden may under the local law of such state have a right to cancel their policy as a result of the Scheme as set out in the document "Local laws for cancellation of policies in certain EEA states" posted in "The restructuring process" page (see menu top left of this page).
What is the transfer process?
In order to make UK Europe the sole legal entity insuring the Club’s Members, it will be necessary to transfer UK Bermuda’s insurance business to UK Europe. In respect of UK Bermuda’s UK branch the transfer will be achieved by way of a court approved scheme under Part VII of the Financial Services and Markets Act 2000. As UK Bermuda is a company incorporated in Bermuda, the transfer will also be sanctioned by the Supreme Court of Bermuda as well as by the courts of the jurisdictions where each of the Club’s branches is based.
I have received a letter regarding the Bermuda Scheme - what do I have to do next?
If you wish to support the Bermuda Scheme, you should exercise your voting rights in favour of the Scheme. The number of your votes is calculated in the Bermuda Scheme by reference to a claims calculation shown in a pre-populated Claim Form. You can vote by completing the Proxy Form, signing the claim form, and returning these two forms to the Club secretariat, to arrive no later than 17:00 on 23rd October 2012.
How is the amount on pre-populated Claim Form for the Bermuda Scheme arrived at?
The amount of the pre-populated claim form shows your share of the total amount of Members’ claims as recorded in the books of UK (Bermuda) as at 20 August 2012.
In accordance with the Club’s accounting policy Members’ claims comprise gross notified outstanding claims and a provision for incurred but not reported claims.
The gross claims you have notified over the years still outstanding are shown in column 1 of the pre-populated form. The Club’s estimate of your share of the provision for incurred but not reported claims is shown in column 2. You can find a detailed explanation of how the Club arrived at these amounts on page 10 of the Bermudian Scheme document.
In simple terms, the Club has allocated the provision for incurred but not reported non- occupational disease claims for a given policy year to each individual Member on the basis of its share of the UK (Bermuda)’s total premium in that policy year. The provision for incurred but not reported occupational disease claims has been allocated to Members that have incurred occupational disease claims in proportion to their share of the total occupational disease claims made.
What is the relation between the amount on the pre-populated Claim Form and the number of my votes?
The amount of votes you have corresponds to the total amount of your claims expressed in US dollars.
What is the difference between the Claim Form and my normal Loss Record Statement?
The table below shows the difference between the Claim Form and your normal Loss Record Statement.
|Claim Form||Loss Record Statement|
|Paid claims||Not included||Included|
|Gross notified outstanding claims||Included in full||Included in full and net of abatement|
|Incurred but not reported claims||Included||Not included|
|Years covered||All||8 years|
Will the amount on the pre-populated claim form affect my renewal?
No. The Bermuda Scheme Claim Form has no bearing on your loss record for renewal purposes. The amount is only relevant for voting purposes at the meeting on 29th October.
Your loss record will be sent out or made available on the Club’s website after the October 2012 Board meeting in the usual way.
The amount on the pre-populated claim form is wrong. What do I do?
A process to correct the amount of your claims for voting purposes is set out on page 10 of the Bermuda Scheme document.
I have received a letter regarding the UK Transfer what do I have to do next?
There is no need to reply to this letter if you have no objection to the proposed transfer. If you do intend to present any objections to the proposed transfer, please contact the Club secretariat before 30th October 2012.
What is the role of the 'Independent Expert' in the UK Transfer?
The Independent Expert’s role is to assess the effects of the proposed UK Transfer and identify whether any parties are likely to be disadvantaged by it. The conclusion of the Independent Expert is that no policyholder would be adversely affected to a material extent by the Transfer and that there is no reason why the Transfer should not go ahead. The full report of the Independent Expert is published in the Club Restructure section of the Club’s website.
Why can’t I vote on the UK Transfer?
The UK Transfer is subject to the approval of the High Court of Justice in England. You are entitled to appear at the hearing and make representations in person and/or to instruct a barrister or solicitor advocate to appear at the hearing and make representations on your behalf and/or to make written representations without appearing at the hearing. The application will be heard on 30 October 2012 by a Judge of the Chancery Division at The Rolls Buildings, 7 Rolls Buildings, London EC4A 1NL.
Why can I vote on the Bermuda Scheme?
The Bermuda Scheme is structured as a scheme of arrangements between the Club and its creditors, i.e. its Members (past and present). It will become legally binding on the Club and its Members if it is approved by a three quarters majority of votes cast at the meeting on 29th October, and the Supreme Court of Bermuda subsequently sanctions the arrangement.
If I am concerned at this development, how can I get my views heard?
You can contact the Club at any time to discuss any issues arising from this re-structure, whether they are questions relating to your own entries or broader questions about the organisation and governance of the Club.
Will the reorganisation proposal in general be put to a Members’ vote?
Yes - at the Annual General Meeting in Paris on 29 October 2012.
Where can I get additional information?
The UK Club website is the dedicated area on the topic of this reorganisation.
This section includes detailed information on the transfer of UK Bermuda’s insurance business to UK Europe.
Updates on the progress of the reorganisation will be posted here as well as additions to these FAQs and other briefing materials.
30th August 2012