TO THE MEMBERS

Dear Sirs,

ISM (International Safety Management) Code - Evidence Of Certification

Members will be aware that as of 1st July, 1998, most flag states require operators of passenger ships, tankers, gas carriers, bulk carriers and high speed craft of over 500 gt to comply with the provisions of the ISM Code, as incorporated in Chapter IX of SOLAS.

Members will also be aware that Rule 5K of the Association was amended with effect from 20th February, 1998 to require, as a condition of cover, that valid statutory certificates be maintained in relation to the ISM Code.

These certificates consist of a Document of Compliance (DOC) for the company, and a Safety Management Certificate (SMC) for each relevant ship. The Rule makes clear that an owner cannot recover in respect of any claim arising during a period when valid certificates are not maintained, unless and to the extent that the Directors otherwise decide.

The Managers' London Agents will wish to see copies of ISM certificates (whether Interim or Full) before considering requests to provide security on behalf of the Association for claims against ships now subject to the Code, and may wish to make similar checks when dealing with other serious claims against such ships.

Over the past few months, many Members have volunteered copies of their ISM certification to the Association. All Members are now recommended to provide such information, in order that any risk of delay in considering requests for security can be minimised, by recording each ship's ISM details in advance. Members may send copies of certificates to the above address, for attention Mrs Julie Page, or through their usual means of contact.

Members should also note that the Application Form for new entries in the Association has been revised to include ISM details. The form is enclosed for general guidance. Further copies will be supplied on request.

Members are advised that, for ships subject to the Code, the Association will require to have seen evidence of ISM certification as a condition of renewal for the 1999 policy year.

Yours faithfully

THOS R. MILLER & SON (BERMUDA)
as agents for Thos R Miller & Son (Bermuda)