Circular 9/01: War Risks P&I Cover

  • Date: 02/09/2001




Dear Sirs


As a consequence of the World Trade Center tragedy on 11 September 2001, we would like to remind Members of the terms of the cover for war risks P&I which has been made available by the Association, and other Clubs in the International Group, to Members since 1986.

Although a number of market war risk underwriters have given seven days' notice of cancellation in respect of their war risks hull and P&I policies, International Group Clubs have not as yet issued seven days' notice of cancellation for the Group's war risks P&I cover, nor given notice of the exclusion of any specific trading areas, although the issue is under review from day to day as events develop.

Members are, however, reminded that the Association's war risks P&I cover is provided on the basis that the protection is intended to pay claims only in excess of amounts recoverable under a Member's existing war risks policy including but not limited to hull and machinery and crew, marine or war risks and any protection and indemnity clauses attached thereto. It was not intended as a substitute for traditional market war risks cover.

Members are therefore expected to maintain their existing war risks cover, including for P&I risks, to the maximum extent available from their war risk underwriters. Under the terms of the special war risks P&I cover, the Directors have the power to exclude trading areas or cancel the cover entirely upon seven days' notice. The Directors will continue to keep the position closely under review, with a view to ensuring that the cover protects the membership as a whole and is not unduly exposed either at the primary level or in any particular area.

The terms and conditions of the Group's war risks P&I cover will in any event be subject to review for 2002.

Yours faithfully


A similar circular has been issued by other Members of the International Group of P&I Associations.


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