At its meeting on November 28th 2006 the Board of Directors decided and confirmed its policy with regard to terms, premium and deductibles for the policy year of February 20th 2007 to February 20th 2008.
In short:
A 7.5% general increase
Limit on cover of USD 5 million.
An estimated supplementary call of 0%.
Release call of 25% for 2007/2008.
Premiums
All premiums are quoted in US Dollars (USD) (unless otherwise agreed) and are debited as advance and supplementary calls. It is anticipated that this policy year will be closed in the year 2010. Unless otherwise agreed, the premium shall be debited in four instalments: at inception February 20th, May 20th, August 20th and November 20th. There is a minimum premium period of three months.
Supplementary call
The supplementary call for this year will initially be decided upon in 2008. The current estimated supplementary call for 2007/2008 is 0%.
Release call
The release call for 2007/2008 is 25%.
Payment of premium
Premiums are to be paid in accordance with the enclosed “Procedures for Payment of Premium.”
Renewals
The premium for 2007/2008 shall be based on the Member’s record for the five year period 2001-2005, including current year if adverse. Records and claims summaries are now available through The Swedish Club extranet, SCOL, available on the Association’s website. The information is updated overnight.
Deductibles/Excess
There is no deductible for the FD&D cover. The Association, however, does not cover disputes involving amounts of USD 7,500 or less unless otherwise agreed. Advice is available on a case-by-case basis.
Lay-up returns
Lay-up returns are not granted for FD&D cover.
Limit of Cover
The cover is limited to USD 5 million for any one dispute. (see also Rules 5 and 6 in respect of Discretion of the Association)
Old years
The current position of the old years is as follows:
| Year | Status | Estimated Supplementary Call | Release Call |
| 2003/2004 and earlier | Closed | – | – |
| 2004/2005 | Open | 0% | 25% |
| 2005/2006 | Open | 0% | 25% |
| 2006/2007 | Open | 0% | 25% |
| 2007/2008 | Open | 0% | 25% |
Special Cover – Building, Purchase, Sale, Conversion or Repair
Rule 3.b.(vi) is amended to the effect that the Association may cover newbuildings, conversion, sale or repairs at special limited conditions if agreed in advance.
FD&D Rule change valid from February 20th 2007
Rule 3
Rule 3 – (vi) Amendment
| New version: any contract for the building, purchase, sale, conversion or repair of the entered ship, including any guarantee in connection with such contract, only to the extent that the Association agrees that claims, disputes or proceedings arising from the particular contract will be covered as a term of entry, | Old version: any contract for the building, purchase, sale, conversion or repair of the entered ship, including any guarantee in connection with such contract, only if the contract was made at the beginning of or during the period of insurance or the Association agrees that claims, disputes or proceedings arising from the particular contract will be covered, |
Comments:
This change entails that contracts for newbuildings, conversion, sale and purchase, etc can be covered on special limited terms only.
Yours sincerely,The Swedish ClubFrans Malmros