OUTLINEThe Resolution for consideration at the SGM on 14th January 2008 (ref Circular 13/07) was passed.
Limit on Special War Risks P&I cover for 2008 policy year remains US$500 million.Members are recommended to review ship values for insurance purposes as the excess point for cover remains "proper value" of ship."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 2008 policy year.Rates have been reduced by 10 per cent.
Overall cost of reinsurance to increase for 2008.Collective overspill reinsurance protection on behalf of each club in the Group purchased once again for the 2008 policy year.Club retention remains at US$7 million for 2008.Oil pollution claims remain subject to a special limit under Rule 5B(ii) of US$1,000 million for owned shipsWar risks P&I and US voyage surcharge premiums reported separately in Club circulars 2/08 and 3/08.
From 1st April 2008, vessels carrying liquid HNS visiting Japan must pre-contract with the Marine Disaster Prevention Centre (MDPC) for responding to HNS incidents.MDPC's contract does not fully comply with the IG guidelines. A special cover has been arranged for all Members as a temporary measure in respect of the increased liability.Members should contact MDPC for enrolment information.
OUTLINEThe Bunkers Convention will enter into force in States Parties on 21st November 2008.
With reference to Club Circular 6/08 - Entry into force of the Bunkers ConventionQ&A on Bunkers Convention Certificates
Solid investment return of 6.51 per cent in challenging investment conditionsTotal funds of US$992 millionNet claims reserves of US$763 millionFree reserves of US$229 millionNo supplementary calls estimated on the open policy years
THIS LETTER AND THE ACCOMPANYING FREQUENTLY ASKED QUESTIONS ARE FOR INFORMATION PURPOSES ONLY AND SHOULD NOT BE CONSTRUED AS AN OFFER, PERSONAL RECOMMENDATION OR SOLICITATION TO CONCLUDE A TRANSACTION AND SHOULD NOT BE TREATED AS GIVING INVESTMENT ADVICE. THE TERMS OF ANY INVESTMENT WILL BE EXCLUSIVELY SUBJECT TO THE DETAILED PROVISIONS, INCLUDING RISK CONSIDERATIONS, CONTAINED IN THE PROSPECTUS OR OTHER ISSUER DOCUMENTATION FOR THE ISSUE OF CAPITAL SECURITIES.FROM THE CHAIRMAN
Members with ships registered in a State Party are recommended to contact the authorities in that State in order to confirm the application procedures for Bunkers Convention certificates. For Members with ships registered in non-State Parties, it will only be possible for the Club to issue Blue Cards when it is clear which State Parties are willing to issue certificates to such ships. Individual application forms are being emailed to each Member to collect the necessary information for issuing Blue Cards. These should be completed and returned as soon as possible. Following legal advice received on the relevant address for insertion in Blue Cards, the Club will insert the address of the registered office unless advised of an alternative address by the Member.