OUTLINERecent casualties have highlighted the dangerous loss of ship stability caused by cargo liquefactionNickel cargoes exported from Indonesia and the Philippines have been identified as prone to...
The Club's recommended pollution clause for tanker charterparties relating to COFRs has been amended. The updates address uncertainties regarding the scope of charterers indemnity under the original clause. The new clause text is provided in the Annexe to this circular
Recommended pollution charterparty clauses were circulated to Members in 1990 in response to prospective oil pollution legislation in the United States of America and amended and consolidated in 1996 and 2008.
The clause has been further updated to remove any uncertainties that may have arisen with regard to the scope of charterers’ indemnity under the clause, in particular with regard to the consequences of non-compliance with financial security requirements and also the rights and liabilities of the parties in the event of the owner agreeing to meet them.
The updated clause also addresses prospective enforcement of the recent amendment to the financial responsibility provisions of OPA 90 by means of the US Coast Guard Authorisation Act of 2010.
The Resolutions for consideration at the SGM on 20th January 2011 (ref Circular 25/10) were passed.
TO THE MEMBERS
REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PREVENTION AND CONTROL OF MARINE POLLUTION FROM SHIPS
We refer Members to previous circulars on the new...
OUTLINEA Special General Meeting will be held on the 20th January 2011 in BermudaThe purpose of the SGM is to consider amending the Club's Rules and confirming the change of...
OUTLINEThis circular updates members on measures taken by the International Group, and by IMO, to promote standard procedures for the issuance of "Blue Cards".In common with all IG Clubs, the...
European Commission Investigation of the International Group of P&I Clubs
OUTLINENew legislation to regulate the investigation and potential prosecution of shipowners and crew in connection with illegal narcotics on board vessels has entered into force in VenezuelaThe Organic Drugs Law (ODL) repealed earlier laws and appears to increase the burden and potential penalties imposed on shipowners and their crewsMembers' attention is drawn to certain risks associated with trading their vessels to Venezuela
Report of the AGM proceedings and resolutions adopted.
General increase for the 2011 policy year set at 5 per cent plus any increase in the cost of the International Group reinsurance premium for 2011 for the mutual Members. The standard deductible will remain at $5,000 for the 2011 policy year. Detailed explanation of the financial background to the Board’s decisions can be found in the "October Review 2010" which accompanies this circular
US Coast Guard published its circular NVIC No 2-10 providing guidance on implementation and enforcement of VRP Final Rule requirements. A correction and further update to Annex 4 of Club Circular 12/10 is provided below. An amendment has been made to the previously circulated Donjon Smit contract. This circular refers to Club Circular 12/10 and a similar circular is to be issued by all Group clubs.
OUTLINEThese precautions arise from the recent decision in the “Bremen Max” case (LLR 2009 Vol. 1 81)This circular relates to <link...
The compulsory insurance provisions of the amended Filipino Migrant Workers Act should come into force before the end of October 2010. P&I cover does not extend to all of the compulsory insurance provisions of the Act, nor cover seafarers directly. Manning & recruitment agencies need to evidence compliance with these compulsory insurance provision before POEA issues an overseas employment certificate. This circular refers to previous circular 9/10 (June 2010).
The compulsory insurance provisions of the amended Filipino Migrant Workers Act should come into force before the end of October 2010. P&I cover does not extend to all of the compulsory insurance provisions of the Act, nor cover seafarers directly. Manning & recruitment agencies need to evidence compliance with these compulsory insurance provision before POEA issues an overseas employment certificate.
The International Group have agreed to cover liabilities arising in respect of the carriage of cargo under certain approved electronic trading systems To date, versions of two such systems have been approved - Bolero (www.bolero.net) and ESS (www.essdocs.com) Traditional exclusions of cover under Club Rules continue to apply in the same manner as with paper systems Participation in electronic trading systems may expose Members to risks for which additional non-P&I cover should be obtained
The International Group of P&I Clubs (IG) and BIMCO have drafted a revised Himalaya clause for use in bills of lading and other contracts A copy of the revised clause is attached to this circular. The clause intends to exempt a contractual carrier’s or other contracting party’s servants, agents or subcontractor’s from liability under a contract or extend to them the same protection from liability enjoyed by the carrier. Care should be taken to ensure the clause achieves its purpose when incorporated into different types of contract e.g. properly defining the terms ‘Carrier’ and ‘Merchant’ when used in bills of lading or other contracts of carriage. Depending on the jurisdiction in which liability may arise, the protection of the clause cannot always be guaranteed.
A further postponement of the requirement to contract with an MSA approved oil pollution response company is likely An update of the existing situation This circular refers to previous circulars 12/09, 15/09, 5/10 & 7/10
This circular provides details of the AGM of the Club in Shanghai on 18th October 2010 and the arrangements for voting by proxy.
This circular applies to owners of tank vessels carrying oil calling at US ports The US Coast Guard Final Rule requires oil tanker owners/operators to submit their vessel response plans (VRPs) relating to salvage and firefighting by 22nd February 2011 It also requires they ensure pre-contracted salvors & firefighters comply with 15 capability criteria. See Annex 1 of this circular. Guidance on use of Lloyds Open Form, contracts and funding agreements are provided in Annexes 2 & 3 of this circular. Annex 4 to this circular contains a comparison of rates and technical contract terms of four salvorsAll four annexes are reproduced on the Club website with this circular and are also available from the Manager's London agents but have not been reproduced in hard copy for reasons of economy.
Rule 5(J)(ii) introduced at February 2010 gives the Directors power to terminate a Member’s insurance if his activities expose the Club to sanction Club circular (Ref no. 10/10) advised Members of the enactment on 1st July 2010 of CISADA a new US law revising US economic sanctions against Iran Under the terms of CISADA, the export of refined petroleum products (RPP) to Iran (amongst other activities) is subject to the imposition of sanctions by the US The Club Board considers that the risk to the Association of a sanction under CISADA is material within the terms of Rule 5(J)(ii)
Circular on Iranian sanctions wef 1 July and CISADA legislation
Amendments to the Filipino Migrant Workers Act of 1995 (Republic Act No. 8042) (MWA) have now become law in the Philippines Final implementation by relevant government agencies is anticipated by 30th June 2010. Accidental death, natural death or disablement claims will be subject to the principle of absolute liability for employers. Insurance cover must now be obtained by manning or recruitment agencies for the benefit of seafarers in addition to any benefits already provided under the POEA and/or CBA s P&I clubs are unable to provide direct cover to seafarers as required under this Act. Manning agents/recruitment agents are not co-assureds on Club certificates of cover.
2007 policy year closed with no further supplementary premium No further supplementary premiums estimated for the 2008 policy year Free reserves and capital (including hybrid capital) increased to US$409 million
REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PREVENTION AND CONTROL OF MARINE POLLUTION FROM SHIPSA further postponement of the requirement to contract with an MSA approved oil pollution response company is likely. China’s MSA is expected to issue additional rules on spill response arrangements in the next two to three months. Members should not contract with response companies for regulatory purposes until after these rules are issued. This circular refers to previous circulars 12/09, 15/09 & 5/10
The Resolution to amend Rule 5J was passed at the SGM on 18th February 2010 (ref Circular 1/10).
Regulations of the People's Republic of China on the Prevention and Control of Marine Pollution from ShipsNo further guidance on new requirements for pre-contracting with spill responders has been received from the Chinese authorities since the Club's last circular. The implementation or enforcement of the pre-contracting requirements is expected to be postponed until details of approved contractors and response capabilities have been made public and an opportunity given to operators to comply. The Managers and CMS will continue to monitor the situation. Members will be kept advised of any material developments.
Collective overspill reinsurance protection on behalf of each club in the Group purchased once again for the 2010 policy year. Club retention increased to US$8 million for 2010. Pooling arrangements unchanged for 2010. Oil pollution claims remain subject to a special limit under Rule 5B(ii) of US$1,000 million for owned ships. War risks P&I and US voyage surcharge premiums reported separately in Club circulars 2/10 and 3/10.
Limit on Special War Risks P&I cover for 2010 policy year remains US$500 million. “Bio-Chem” exclusion remains and a supplementary cover for "Bio-Chem" risks in respect of crew & legal costs limited at US$30 million continues to be available. A portion of these covers is provided in accordance with the requirements of the US Terrorism Risk Insurance Act of 2002 (Act), as amended by the Terrorism Risk Insurance Program Reauthorization Act (TRIRA) of 2007.
The additional premium system for tankers carrying persistent oil to or from the United States will continue for the 2010 policy year. Rates have been reduced by 16 per cent.
Notice of a Special General Meeting in Bermuda on 18th February 2010 to amend the Rules for the 2010 policy year. The proposed Rule change addresses potential risks to the Club from government sanctions or prohibitions which materially affect the Club. The amendment is recommended by the Board to protect the Club in the context of recent Bermudian legislation.