Circular 04/24: Notice of Cancellation in respect of War Risks
The Club’s reinsurers have advised the Club that they will no longer be able to support the Club for war risks exposures within the Indian Ocean, Gulf of Aden and Southern Red Sea. As a result the Club is regrettably forced to alter the scope of coverage afforded to Members for Charterers Liability and Ship Owners' extended and ancillary covers.
Notice of Cancellation (“Notice”) is hereby given that, with effect from Noon GMT Tuesday 20th February 2024, the following coverage changes will be implemented in respect of War Risks coverage on all non-mutual business including but not limited to Charterer's Liability Cover, Non-Poolable extended and ancillary covers to Mutual entries and Fixed Premium P&I Cover.
Notwithstanding anything to the contrary contained in each and any Member’s terms of entry current at the time of this Notice, including but not limited to the Club’s Charterers Terms and Conditions 2023, with effect from Noon GMT Tuesday 20th February 2024 war risk cover shall exclude liabilities, losses, damages, costs and expenses, caused by or arising out of or in any way connected with one or more of the following risks:
(i) war, civil war, revolution, rebellion, insurrection, or civil strife arising therefrom, or any hostile act by or against a belligerent power;
(ii) capture, seizure, arrest, restraint, or detainment, and the consequences thereof or any attempt thereat;
(iii) derelict mines, torpedoes, bombs, or other derelict weapons of war;
(iv) strikes, locked-out workmen, or persons taking part in labour disturbances, riots or civil commotions;
(v) terrorism, or any person acting maliciously or from a political motive;
(vi) confiscation, nationalisation, expropriation, deprivation or requisition,
Where any such liabilities, losses, damages, costs and expenses occur or arise in the waters specifically mentioned below:
Indian Ocean, Gulf of Aden and Southern Red Sea. The waters enclosed by the following boundaries:
a) on the northwest, by the Red Sea, south of Latitude 18°N
b) on the northeast, from the Yemen border at 16°38.5'N, 53°6.5'E to high seas point 14°55'N, 53°50'E
c) on the east, by a line from high seas point 14°55'N, 53°50'E to high seas point 10°48'N, 60°15'E, thence to high seas point 6°45'S, 48°45'E
d) and on the southwest, by the Somalia border at 1°40'S, 41°34'E, to high seas point 6°45'S, 48°45'E
excepting coastal waters of adjoining territories up to 12 nautical miles offshore unless otherwise provided.
This Notice shall apply to all persons or companies named as Assureds and/or Co-assureds.
For the avoidance of doubt, this Notice is being given on behalf of the Club in compliance with the 72 hours notification requirements stipulated in each and any Member’s terms of entry for the applicable cover(s) in question, however cancellation is extended beyond said 72 hours and will take effect at Noon GMT Tuesday 20th February 2024.
This Notice does not alter the position of any other area currently restricted or excluded under each and any Member’s terms of entry with the Club. All other terms and conditions remain unchanged.
The Club is working on a solution to provide a reinstatement of cover on a risk by risk basis and will advise on progress in due course.
This Notice of cancellation does not apply to Mutual entries for P&I, including the Group Excess P&I war and Group PLR War covers.
