OUTLINEA special general meeting will be held on 14th February 2006 in Bermuda.The SGM is to consider amending Rule 2, Section 12 and Rule 5, Section F.The papers for this meeting are enclosed.ACTIONMembers should ensure their completed proxy form is faxed or sent to the Secretary 12 hours before the meeting.
OUTLINEThe Clubs in the International Group have adopted a common scope, and common triggers, for P&I condition surveys, consistent with the UK Club's existing condition survey programme.However, one additional factor that Clubs have agreed to take into account in deciding which ships to target for a condition survey, is carriage of heavy fuel oil (HFO) as cargo in ships that are 10 years old or more.Members will be asked to declare, early in the 2006 policy year, which of their ships of this age have carried HFO as cargo during the 2005 policy year, subject to certain exceptions.ACTIONAscertain which of your ships aged 10 years or more have carried HFO as cargo during the 2005 policy year, so that the information may be passed to your usual Club contact in the new policy year.
OUTLINE Since April 2005 the US Bureau of Customs and Border Protection (CBP) has required electronic filing of passenger and crew information. From 1st February 2006 the CBP will enforce the requirement for an international carrier bond (ICB) for all international carriers transporting passengers and/or crew members. ACTION Members should establish the identity of carrier for the purposes of this regulation and ensure an appropriate ICB is in place.
OUTLINE SGM to proceed on 14th February 2006, as announced in Circular 1/06
OUTLINELimit on Special War Risks P&I cover for 2006 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, as amended by the Extension Act of 2005.
OUTLINEThe additional premium system for tankers carrying persistent oil to or from the United States will continue for the 2006 policy year.Rates have been reduced by 5 per cent.
OUTLINE 5/06 and 6/06 Confirmation that the Group reinsurance contract will be renewed at an overall increase of approximately 7 per cent on a per ton basis The Club intends to continue its protection of the first US$1,000 million of its overspill claim exposure. Oil pollution claims remain subject to special limit under Rule 5B(iii) - US$1,000 million for owned entries and US$350 million for chartered entries. Special war risks P&I and US oil pollution are reported separately in Club circulars
OUTLINE Two resolutions amending the Rules in respect of pollution risks and nuclear risks were passed at the SGM
OUTLINEThe Club's overspill reinsurance arrangements protect its share of the Pooled claims exposure in excess of the US$2.05 billion upper limit of the Group excess loss reinsuranceFor 2006, the Club has bought additional reinsurance to cover its share of a US$1 billion overspill claim
OUTLINEPolicy year review and financial highlights at 20th February 2006Financial year surplus of $11mInvestment returns above target at 6 per cent.Free reserves up five per cent to $217mEncouraging 2005 policy year claims experience compared to the 2004 policy year