Circular 6/02: Rule Amendments

TO THE MEMBERS

Dear Sirs

RULE AMENDMENTS

At the Special General Meeting held in Bermuda on 14th February 2002, the Resolution proposing amendments to Rule 5(E) as indicated in the Agenda, was passed.

With effect from 12 noon Greenwich Mean Time on 20th February, 2002, Rule 5E reads:

"E. EXCLUSION OF WAR RISKS

The Association shall not indemnify an Owner against any liabilities, costs or expenses (irrespective of whether a contributory cause of the same being incurred was any neglect on the part of the Owner or on the part of the Owner's servants or agents) when the loss or damage, injury, illness or death or other accident in respect of which such liability arises or cost or expense is incurred, was caused by:

i. War, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, or any hostile act by or against a belligerent power, or any act of terrorism.

ii. Capture, seizure, arrest, restraint or detainment (barratry and piracy excepted) and the consequences thereof or any attempt thereat.

iii. Mines, torpedoes, bombs, rockets, shells, explosives or other similar weapons of war (save for those liabilities, costs or expenses which arise solely by reason of the transport of any such weapons whether on board the entered ship or not), provided always that this exclusion shall not apply to the use of such weapons either as a result of government order or with the written agreement of the Directors or the Managers where the reason for such use is the avoidance or mitigation of liabilities, costs, or expenses which would otherwise fall within the cover given by the Association.

PROVIDED ALWAYS that:

The Directors may resolve that special cover be provided to the Members against any or all of the risks set out in Rule 2 notwithstanding that those liabilities, costs or expenses would otherwise be excluded by this paragraph (E) and that such special cover should be limited to such sum or sums and be subject to such terms and conditions as the Directors may from time to time determine.

In the event of any dispute as to whether or not an act constitutes an act of terrorism, the decision of the Directors shall be final."

Members are reminded that the terms of the Directors' resolution providing special cover for risks otherwise excluded by this Rule, as now amended, can be found in

Yours faithfully

THOMAS MILLER (BERMUDA) LTD.

Circular No 4/02 of February, 2002.

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