Iran sanctions relief period extended

Members are advised that confirmation has been received from the US government and from the EU Council that the existing relief program, which ran from 20 January to 20 July, suspending certain Iran sanctions measures, is being extended for 4 months to 24 November 2014. A copy of the notice from the EU Council is attached.

There is no change to the status of the sanctions relief program other than the extension of the period in which it is effective. Members are therefore reminded of the advice issued in Circular 23/13 (dated January 2014) that the IG Clubs (and their reinsurers) will not be permitted to pay claims in respect of matters within the scope of the sanctions relief program after the program ends, regardless of whether such claims arose from events that occurred during the period of relief, unless and to the extent that the period of relief is further extended.

Members should therefore proceed on the basis that beyond 24 November 2014 (or any extension of this further four month period), the Club will not be able to respond to any claims presented in respect of liabilities arising during the 20 January/24 November relief period. This has the effect of rendering the suspension of sanctions on insurance cover and in particular P&I cover, of very limited value.

Members are strongly recommended not to enter into contracts for transportation of cargoes within the scope of the sanctions relief program without prior consultation with the Club in relation to insurance cover arrangements.