Circular 3/95: 1995 Policy year - Oil Pollution Limit


TO THE MEMBERSref. 1/95.

Dear Sirs,

Oil pollution limit

At their meeting on 26th January, 1995, the Directors determined in accordance with Rule 5(B)(iii) that for the 1995 policy year the sums to which the Association's liability in respect of any and all claims for oil pollution shall be limited are:

US$500 million each accident or occurrence in respect of each ship entered by or on behalf of an Owner not being a charterer other than a charterer by demise or bareboat charterer


USS 100 million each accident or occurrence in respect of each ship entered by or on behalf of a charterer (other than a charterer by demise or bareboat charterer) or by more than one such charterer as Joint Owners, subject to an aggregate limit in accordance with proviso (c) to Rule 5(B) (iii) of US$300 million.

The terms of Rule (5)(B) (iii) govern the application of these limits.

Excess oil pollution cover

The $200 million oil pollution cover excess of the Association's cover limit of $500 million is available for 1995. This cover is not provided by the Association itself but is placed directly with market underwriters on behalf of those Members who require it.

Members wishing to avail themselves of the cover should contact either their brokers or the Managers' London agents for details.

Oil pollution risks in the United States - additional premium

Details of the scheme for 1995 are set out in the Association's circular,

Advance call instalments

The Directors decided to maintain for a further year the arrangement for payment of the advance call in four instalments. Accordingly debit notes will provide for payment of the 1995 policy year advance call in four instalments on or before the following dates: 20th March, 20th May, 20th August and 20th October.

War risks P & I

The Directors also decided that special cover for claims otherwise excluded by the terms of Rule 5(E) will be continued for the 1995 policy year on the terms and conditions set out in the Directors' resolution which is reprinted below.

"That in accordance with the proviso to Rule 5(E) of the Association's Rules, special cover be provided to the Members of the Association for the year commencing at 12 noon G.M.T. on 20th February, 1995 against risks which are excluded from cover solely by virtue of the provisions of Rule 5(E). Unless otherwise agreed in writing, such cover shall be subject to all other terms and conditions of an Owner's entry in the Association and shall be provided upon and subject to the following terms and conditions.


1. The risks covered shall be those set out in Rule 2 of the Association's Rules in accordance with each individual Owner's terms of entry as set out in the relevant Certificate of Entry and any Endorsement thereto.

2. This special cover shall form an extra layer of insurance in excess of such amount, if any, as is recoverable in respect of any claim under the terms of any other policy of insurance, whether war risks or otherwise.

3. The limit applying to this special cover shall be US$50,000,000 each vessel, any one accident.

4. At any time or times before, or at the commencement of, or during the currency of any Policy Year of the Association, the Directors may in their discretion determine that any ports, places, countries, zones or areas (whether of land or sea) be excluded from the insurance provided by this special cover. Save as otherwise provided by the Directors this special cover shall cease in respect of such ports, places, countries, zones or areas at midnight on the 7th day following the issue to the Members of notice of such determination in accordance with Rule 41 of the Association's Rules. Unless and to the extent that the Directors in their discretion otherwise decide there shall be no recovery from the Association under this special cover in respect of any claim howsoever arising out of any event, accident or occurrence within the said area after such date.

5. Whether or not notice has been given under clause (4) above, this special cover shall terminate automatically:


i. upon the outbreak of war (whether there be a declaration of war or not) between any of the following countries:


United kingdom, United States of America, France, the Russian Federation, the People's Republic of China

and this insurance excludes loss, damage, liability or expense arising from such outbreak of war;


ii. in respect of any vessel, in connection with which cover is granted hereunder, in the event of such vessel being requisitioned either for title or use and this insurance excludes loss, damage, liability or expense arising from such requisition.


6. Notwithstanding any other term or condition of this insurance, the Directors may in their discretion cancel this special cover giving 7 days' notice to the Members (such cancellation becoming effective on the expiry of 7 days from midnight of the day on which notice of cancellation is issued by the Association) and the Directors may at any time after the issue of notice of such cancellation resolve to reinstate special cover pursuant to the proviso to Rule 5(E) on such terms and conditions and subject to such limit as the Directors in their discretion may determine".


Yours faithfully,


Staff Author