Three per cent general increase for 2012

  • Date: 20/10/2011

At their Board meeting in Athens on 17th October, our Directors decided that premium rating should be increased by three percent for 2012.

This decision was taken in response to continuing underlying claims inflation.  Although the frequency of claims had reduced significantly in 2009, 2010 and 2011, the average cost per claim has continued to increase over this period. 

Our chairman Dino Caroussis explained the decision.

“We were determined to strike a balance between ensuring our premium does not fall behind claims inflation while at the same time doing all we could to limit the impact of the increase on our shipowner members. Although we have been fortunate to enjoy lower claims numbers, there is still an average inflation on P&I claims of around 5 per cent.  This underlying inflation will quickly manifest itself in our claims costs once the frequency picks up again, as it surely will one day. Taking all of this into account we set the general increase for 2012 at 3 per cent.

The Club’s October Review 2011 provides the half-year figures for the 2011/2012 year which were reviewed by the Board at their meeting.

“This strengthening of our financial position has been largely brought about by a reduction in the number of claims, driven mainly by the drop in world trade.  But we have also been able to contribute to that reduction by careful management of our risks.”

Mr Caroussis also commented on the encouraging developments in the Club’s financial standing, “Free reserves have been rebuilt.  Last year these stood at $478 million. Today, those reserves have grown to $486 million. The Club’s capital adequacy as measured by S&P’s capital model is now in the AAA range and we have free reserves of $4.50 per ton.”

Formal publication of the general increase announcement can be found in the Circular 12/11 which is being mailed to all Members and their brokers together with the Club’s October Review.  Both these publications and the Circular 13/11 reporting the Annual General Meeting also held that day can be found in the Publications section of this website.


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


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.