New Passenger Liability Regulation ("PLR")

The European Union's PLR applies to all ships carrying more than 12 passengers and either registered in or trading to an EU or EEA Member State takes effect from 31 December 2012.

This regulation implements the key provisions of the Athens Convention 1974 as amended by the 2002 Protocol and 2006 IMO Reservation and Guidelines. It requires certification of insurance for liabilities up to SDR 250,000 (approximately US$ 384,970) per passenger. Our

outlines the key provisions and issue of non-war Blue Cards to facilitate owners' application for State certificates in advance of 31 December 2012.

As the PLR becomes effective approximately seven weeks before the start of the 2013 policy year Blue Cards will be issued for the period 31 December 2012 to noon GMT 20 February 2013. New Blue Cards will be needed to cover the subsequent policy year from 20 February 2013 to 20 February 2014.

The International Group clubs do not provide primary war risks cover. Arrangements for alternative means of compliance with the PLR requirement for a war risks Blue Card are currently under discussion within the Group. Further developments on that issue should be announced shortly.