TO THE MEMBERS

ref: 1/02) dated January 2002 contained information regarding the second phase of implementation of the International Safety Management Code (ISM), applying to all cargo ships not in phase one, including general cargo ships, container ships and mobile offshore drilling units of 500 gt or more.

Dear Sirs

International Safety Management Code - 1st July 2002

Second Phase Implementation

Members will recall that the Association's circular (

Members should be aware that Rule 5K of the Association requires, 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 claims arising during a period when valid certificates are not maintained, unless and to the extent that the Directors otherwise decide.

As has already been the practice for phase one ships since 1998, the Managers' London Agents will wish to see copies of ISM certificates (whether interim or full) for phase two ships before considering requests to provide security on behalf of the Association, and may wish to make similar checks when dealing with other serious claims against such ships. In the run up to the implementation of phase two, many Members involved with this stage of the implementation of the Code have volunteered copies of their ISM certification to the Association. All Members who have not so far sent copies of their ISM certification are now reminded 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.

This circular is intended primarily for those Members to whom the second phase of the Code applies; however, the recommendation that the Association receives up to date copies of ISM certificates applies to all Members.

Yours faithfully

THOMAS MILLER (BERMUDA) LTD