Circular 2/96; 1996 Policy Year - Oil Pollution Limit

  • Date: 01/02/1996

TO THE MEMBERS ref 1/96.

Dear Sirs,

Oil pollution limit

At their meeting on 25th January, 1996, the Directors determined in accordance with Rule 5(B) (iii) that for the 1996 policy year the sums to which the Association's liability in respect of any and all claims for oil pollution shall be limited are:

US$500 million each accident or occurrence in respect of each ship entered by or on behalf of an Owner not being a charterer other than a charterer by demise or bareboat charterer


US$100 million each accident or occurrence in respect of each ship entered by or on behalf of a charterer (other than a charterer by demise or bareboat charterer) or by more than one such charterer as Joint Owners, subject to an aggregate limit in accordance with proviso (c) to Rule 5(B) (iii) of US$300 million.

The terms of Rule 5(B) (iii) govern the application of these limits.

Excess oil pollution cover

The $200 million oil pollution cover excess of the Association's cover limit of $500 million is available for 1996. This cover is not provided by the Association itself but is placed directly with market underwriters on behalf of those Members who require it.

Members wishing to avail themselves of the cover should contact either their brokers or the Managers London agents for details.

Oil pollution risks in the United States - additional premium

Details of the terms and conditions for 1996 are set out in the Association's circular

Advance call instalments

The Directors decided to maintain for a further year the arrangement for payment of the advance call in four instalments. Accordingly debit notes will provide for payment of the 1996 policy year advance call in four instalments on or before the following dates: 20th March, 20th May, 20th August and 20th October.

War risks P & I

This special cover for claims otherwise excluded by the terms of Rule 5(E) has been in place for some years. For 1996, the limit on this cover is to be increased from $50 million to $100 million. Otherwise, the terms and conditions are unchanged from the 1995 policy year cover. Members requiring a copy of the Board resolution setting out these terms and conditions in full should contact the Managers' London agents.

Yours faithfully,



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