Rule 5(J)(ii) introduced at February 2010 gives the Directors power to terminate a Member’s insurance if his activities expose the Club to sanction Club circular (Ref no. 10/10) advised Members of the enactment on 1st July 2010 of CISADA a new US law revising US economic sanctions against Iran Under the terms of CISADA, the export of refined petroleum products (RPP) to Iran (amongst other activities) is subject to the imposition of sanctions by the US The Club Board considers that the risk to the Association of a sanction under CISADA is material within the terms of Rule 5(J)(ii)
Circular on Iranian sanctions wef 1 July and CISADA legislation
Amendments to the Filipino Migrant Workers Act of 1995 (Republic Act No. 8042) (MWA) have now become law in the Philippines Final implementation by relevant government agencies is anticipated by 30th June 2010. Accidental death, natural death or disablement claims will be subject to the principle of absolute liability for employers. Insurance cover must now be obtained by manning or recruitment agencies for the benefit of seafarers in addition to any benefits already provided under the POEA and/or CBA s P&I clubs are unable to provide direct cover to seafarers as required under this Act. Manning agents/recruitment agents are not co-assureds on Club certificates of cover.
2007 policy year closed with no further supplementary premium No further supplementary premiums estimated for the 2008 policy year Free reserves and capital (including hybrid capital) increased to US$409 million
REGULATIONS OF THE PEOPLE’S REPUBLIC OF CHINA ON THE PREVENTION AND CONTROL OF MARINE POLLUTION FROM SHIPSA further postponement of the requirement to contract with an MSA approved oil pollution response company is likely. China’s MSA is expected to issue additional rules on spill response arrangements in the next two to three months. Members should not contract with response companies for regulatory purposes until after these rules are issued. This circular refers to previous circulars 12/09, 15/09 & 5/10
The Resolution to amend Rule 5J was passed at the SGM on 18th February 2010 (ref Circular 1/10).
Regulations of the People's Republic of China on the Prevention and Control of Marine Pollution from ShipsNo further guidance on new requirements for pre-contracting with spill responders has been received from the Chinese authorities since the Club's last circular. The implementation or enforcement of the pre-contracting requirements is expected to be postponed until details of approved contractors and response capabilities have been made public and an opportunity given to operators to comply. The Managers and CMS will continue to monitor the situation. Members will be kept advised of any material developments.
Collective overspill reinsurance protection on behalf of each club in the Group purchased once again for the 2010 policy year. Club retention increased to US$8 million for 2010. Pooling arrangements unchanged for 2010. Oil pollution claims remain subject to a special limit under Rule 5B(ii) of US$1,000 million for owned ships. War risks P&I and US voyage surcharge premiums reported separately in Club circulars 2/10 and 3/10.
Limit on Special War Risks P&I cover for 2010 policy year remains US$500 million. “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 2010 policy year. Rates have been reduced by 16 per cent.