Circular 15/02: U.S. Terrorism Insurance Legislation

TO THE MEMBERS
Dear Sirs

US TERRORISM INSURANCE LEGISLATION

This legislation is likely to come into effect possibly as early as 28th November 2002 and could have very serious consequences for shipowners and their Clubs.

When the Act comes into effect you will receive a notice to pay an additional premium, probably of several million dollars, if you wish to take advantage of the additional cover which the Club is obliged under the Act to make available to you. If you decline to pay the premium, your ordinary P&I cover and the existing special War Risks P&I cover in respect of terrorism will continue as at present, and you will not be liable for the additional premium requested.

You will find attached a note which explains in more detail the reasons why this step is being taken.

Yours faithfully
THOMAS MILLER (BERMUDA) LTD.