Loss record guide (November 2013)
The loss record format provided to Members is expressed on a scale of 100 per cent. This change in presentation does not change any claims or premium data. The record states the overall financial position with the Club. This latest edition (November 2013) has been given some detail changes in presentation to better explain these statements. The format of the loss record remains unchanged.
Iran sanctions update - 26th November 2013
The agreement at last weekend's summit between Iran and representatives of USA, UK, China, France, Russia & Germany on the Iranian nuclear programme has encouraged speculation that sanctions against Iran will be markedly reduced. We have attached two useful updates on sanctions from law firms Clyde & Co. and Freehill which provide insights into the changes that may arise after the recent summit.
These 'Client Advisory' bulletins from Gallagher Marine Systems complements their advisory #16-13 from 30 September published on the Club website. Advisory #10-13 originally provided information on the differences between the expiring 2008 Vessel General Permit (VGP) and the final version of the 2013 VGP. Advisory #20-13 is an update to #16-13 that provides additional information on the 2013 VGP and the NTVRP Final Rule Resubmission. An advisory from ECM provides highlights on the new VGP terms. A link to the US Environmental Protection Agency's VGP fact sheet is also provided.
Advisory on Final Rule relating to Nontank Vessel Response Plan requirements confirms 30 January 2014 VRP submission date.
Charterer incurs $138 million liability by breach of 'safe port' warranty - the Ocean Victory case
The Ocean Victory case illustrates how charterers' liabilities for breaching safe port warranties can be very large. The claimant hull underwriters successfully claimed $137.7 million from charterers, which comprised $88.5 million for the loss of the vessel, wreck removal costs of $34.5 million, $12 million in SCOPIC costs pursuant to LOF 2000, and $2.7 million in lost hire.
Efforts by the International Group to obtain confirmation from flag states that they will accept club certificates of entry as evidence of financial security for liabilites under MLC 2006 continue to make progress.
Australia: can Charterers be required to provide security under s.27 of the updated Protection of the Sea Act?
Australian policy makers have a very low tolerance for pollution of the sea. This is reflected in the Commonwealth's Protection of the Sea (Prevention of Pollution from Ships) Act 1983 ("the Act") which (at Sections 9 and 10) sets out strict liability offences for oil and oily water pollution attracting maximum fines of AUD$3.4 million for individuals and AUD$17 million for corporations.
The International Group has prepared a briefing note on the new US sanctions measures which is attached here.
The first call date of the UK Club's hybrid capital bond falls on the 22nd August 2013. Instead of calling the UK Club's hybrid capital on that date, the UK Club is seeking consent to the amendment of some of its terms, including a revised coupon and extending the first-call date to August 2018.
The average cost of an illness claim has risen from US$19,000 in 2008 to US$28,000 by 2012 equivalent to a nine per cent annual increase. This continuing inflation in personal injury and illness claims focuses the Club's attention on loss prevention and advice which can be found in the
The United States Coast Guard maintains a useful resource page on ballast water management. To view the entire resource page and its various materials click the following link:
Survey Questionnaires for Members & brokers
A key step this year in meeting the service standards and expectations of the membership will be to carry out a member and broker satisfaction survey. This will help identify those areas going well and those requiring improvement. An independent market research consultancy has been appointed and a questionnaire has been developed, which will be sent to all Members and their brokers in the first week of April this year.
Email notifications are now being sent providing the latest Certificate of Entry, corresponding debit notes, blue cards, renewal confirmations and COFR documentation to individual renewing Members of both UK P&I and UK Defence. The attached PDF files are valid as original documents when printed on a colour printer. If you have not received these essential documents, please call your usual underwriting contact without delay.
Immediate access to 2013 documentation
As Members renew their entries for 2013 they will receive PDF copies of their documentation by email, either directly or through their brokers. You can print the documents contained in that PDF attachment on a colour printer and treat them as original documents. Please note that we will not be issuing hard copies of these documents. The renewed Certificates of Entry, debit notes, Blue Cards and COFR documentation can all be downloaded the instant they are produced by accessing the Members Area of our website.
EU Council publishes regulation defining scope of restrictive measures against Iran - 21 December 2012
On 21 December 2012, the EU Council approved the implementing regulation (Regulation (EU) No 1263/2012 amending Regulation (EU) No 267/2012) concerning restrictive measures against Iran. The new regulation gives legal effect to the restrictive measures agreed in Council Decision 2012/635/CFSP adopted in October 2012 (previously reported on the Club webpage:
UKDC Counterparty Risk – Claims for Damages
Development of the Law; Causation; Remoteness; Remoteness and Shipping - The "Achilleas"; Accepting repudiatory breaches; Mitigation; Date that damages are assessed; Assessment of damages; Wasted expenditure as basis for damages; "Cost of Cure" basis of assessment; Summary
On the 9th November the Supreme Court in Bermuda also sanctioned the transfer of UK Club (Bermuda)'s business to UK Club (Europe). UK Club (Bermuda) will become the reinsurer of UK Europe and continue to be the holding company controlled by its members. The new structure will take effect from February 2013 and does not impact members in the 2012 policy year.