OUTLINE

• Club retention maintained at US$8 million for 2012.
• Pooling retention maintained at US$60 million for 2012.
• Oil pollution claims remain subject to a special limit under Rule 5B(ii) of US$1,000 million for owned ships.
• US voyage surcharge premiums and War risks P&I  reported separately in Club circulars 1/12  and 3/12.
• Charterers P&I cover limited to sums recoverable from reinsurers for claims in excess of US$100 million.
• The aggregate liability for claims in respect of passengers remains limited to US$2,000 million and limited to US$3,000 million in respect of passengers and seamen.

TO THE MEMBERS

Dear Sirs

2012 POLICY YEARPooling arrangements for 2012

For the 2012 policy year, the Club retention will continue at its current level of US$8 million. The Group Pooling retention will continue at US$60 million and continues to be insured by the Group captive, Hydra, and pre-funded by a premium contribution from each club. This premium is included in the reinsurance rates.

Reinsurance arrangements

The International Group's general excess of loss contract has been renewed on the same terms and structure as for the 2011 policy year. The Group's Pooling retention remains at $60 million.

As usual, the Group managers have assessed the contributions payable by different ship types to the overall cost of the Group's programme and, in adjusting the reinsurance rates for the different ship types, the Group managers have given consideration in particular to the claims record of those ships on the reinsurance programme over the years.

The Group reinsurance rates (per gt) will be charged to Members for 2012 as follows: