Circular 4/99: Overspill Call Protection


  • Date: 01/02/1999

TO THE MEMBERS

Dear Sirs,

OVERSPILL CALL PROTECTION

For the 1999 policy year, the Association is providing substantial additional protection for its Members against the possibility of meeting the overspill costs of a catastrophe claim.

Members will be aware that the International Group of P&I Clubs’ reinsurance contract covers claims between US $30 million and approximately US $2.03 billion. Above that, any excess, or "overspill", would be pooled among the Group Clubs. Since the overall limit of cover is now about US $4.25 billion (the exact figure is calculated in accordance with the Association’s Rule 22), the overspill element of the maximum possible claim would be about US $2.22 billion, shared between all the Group Clubs.

Although the chance of any overspill is extremely remote - indeed, there has never been such a claim on the P&I Clubs - the Directors have decided to increase substantially protection for Members against the potential cost of such an overspill.

This has been achieved by enhancing the protection from the U.K. Club's special Catastrophe Reserve (about US $260 million) by using income from the Reserve to purchase a further US $1 billion of reinsurance cover. Together, the Reserve and this special reinsurance will provide protection for the Association’s 20 per cent share (approximately) of US $1.26 billion of overspill claims falling on the policy year.

Members requiring further clarification are invited to contact the Managers.

Yours faithfully

THOS R. MILLER & SON (BERMUDA)

,

Industry developments

Polar Shipping

Legal, navigational and environmental resources, news and updates on the development of polar shipping. Read more


US VRP Compliance

With effect from 30th January 2014 non-tank as well as tankships calling at US ports will be required to submit VRPs.  For Club and other resources to assist in compliance click here


International Environmental compliance

Environmental Compliance resource page collates material in respect of International environmental compliance issues affecting our Members. Information from the Club, Loss Prevention and external resources has been collated in one place for ease of reference.


MLC 2006

The Maritime Labour Convention enters into force in August 2013 - resources, news & advice on implementation can be found in this dedicated section.  READ MORE


International sanctions

Recent guidance & corresponding material in respect of international sanctions against various countries has been updated with respect to temporary easing of sanctions against Iran.  READ MORE


Piracy

Essential precautions and preparation against piracy, as well as additional information and resources, loss prevention advisories and useful external web links


Emergency Contacts


If you need to call our offices out of hours and at weekends, click After Office hours for a up to date list of the names of the Duty Executives and their mobile phone numbers. 

Ship Finder


This Ship Finder is updated on a daily basis. Members who need to advise the Club of updates to their recorded ships' details should advise their usual underwriting contact.