Circular 3/00: Policy Year Oil pollution limit

  • Date: 01/02/2000




Oil pollution limit

Following the decision (supported by the UK Club) of the International Group to increase reinsurance protection for oil pollution from US$500 million to US$1,000 million for the 2000 policy year, the Board has determined in accordance with Rule 5(B)(iii) that for the 2000 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$1,000 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.

Oil pollution risks in the United States - additional premium

Details of the additional premiums for 2000 are set out in the Association's circular ref 2/00.

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 2000 the terms and conditions, including the US$100 million cover limit, are unchanged from the 1999 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.

Mutual Premium and Protection of the Association's Reserves

Details of mutual premium and the reinsurance contract with the Swiss Re are set out in the Association's circular 21/99. The Swiss Re contract has now been finalised and, together with the Association's reserves and special overspill reinsurance, it reduces very significantly the possibility of any supplementary or overspill call.

Yours faithfully



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