At its meeting on November 4 th 2004 the Board of Directors decided and confirmed its policy with regard to terms, premium and deductibles for the policy year of February 20th 2005 to February 20th 2006 .

In short:

No general increase.
Limit on cover of USD 5 million imposed.
Charterers FD&D cover terminated. Charterers will be offered the mutual FD&D cover.
An estimated supplementary call of 0 %.
A predicted release call of 25 % for 2005/2006

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 2008. 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 2006. The current estimated supplementary call for 2005/2006 is 0 %.

Release call
The release call for 2005/2006 is predicted to be 25 %.

Payment of premium
Premiums are to be paid in accordance with the enclosed “Procedures for Payment of Premium“.

Renewals
The premium for 2005/2006 will be based on the Member’s record for the five year period 1999-2003, including current year if adverse. Records and claims summaries are now available through the Swedish Club extranet, SCOL. 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, although 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)

FD&D Rule changes and additions valid from February 20th 2005
Additional paragraph to FD&D Rule 2 – Limitation of FD&D cover
The cover afforded by the Association shall be limited to USD 5 million for any one dispute.

Old Years

Special Cover

The Association may cover newbuilding and conversion risks at special limited conditions.

Charterers’ FD&D Cover

The Board decided to terminate the separate cover for Charterers. Charterers are accordingly invited to enter into the mutual FD&D cover as described above.

Yours sincerely,The Swedish ClubFrans Malmros