Circular 14/06: New European-based Mutual Subsidiary of the Association - UK (Europe)

  • Date: 07/12/2006


  • The Club’s new mutual subsidiary UK (Europe) commences underwriting with effect from 20th February 2007
  • UK (Europe) will enable certain Members to meet their local European regulatory requirements.


Dear Sirs


With effect from 20th February 2007 a new London-based mutual association will operate as a subsidiary of this Association. The subsidiary will be called The United Kingdom Steam Ship Assurance Association (Europe) Limited - UK (Europe).

UK (Europe) is being created to allow the Association to insure Members whose ships fly the flag of certain States, such as Spain and Italy, where local insurance regulations require the insurer to possess an EEA regulatory "passport". UK (Europe) has been created by reinstating the underwriting licence of the Sunderland P&I Club, whose liabilities have been reinsured by this Association since it went into run-off on 20th February 1991.

It is intended to run the business of this Association and that of UK (Europe) on a unified basis and the structure of the arrangement between the two associations has been designed to achieve this. There will be only one Member of UK (Europe), namely the Association, and control of the subsidiary will be exercised via that membership. Members who use UK (Europe) as their route into the Association will become Members of the Association (as they are at present), although their policy of insurance will be issued by UK (Europe). As Members of the Association their rights will be identical to those of other Members of the Association. In particular, the general increase levied will be the same for all Members no matter which route into the Association they choose and, further, they will have the same rights to share in a distribution of funds and the same obligations to contribute to a call for further funds.

The rules and cover will be identical for both associations (except for logical amendments) for all Members whether the ship is entered via UK (Europe) or directly in the Association. Management of UK (Europe) will be carried out by the same Thomas Miller staff, using the same systems and following the same procedures and policies.

The regulator of UK (Europe), the Financial Services Authority in the United Kingdom, has already approved the new arrangements and UK (Europe) will have the necessary rights to trade into relevant European countries from 20th February 2007. For Members from those countries which require their insurance to be placed with a European-based association, it will be necessary for the subsidiary association to collect any insurance premium tax or other taxes required by local national laws.

Those Members whose ships are expected to be insured by UK (Europe) will be contacted to explain the changes in more detail.

Yours faithfully


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