We refer to our distributed circular P&I 2405/2001 dated December 10th 2001. This circular is an addendum with information that was not available at the time of issuance of the circular P&I 2405/2001.
Reinsurance
The Association is participating in the International Group of P&I Clubs’ general reinsurance arrangement in excess of USD 30,000,000. The net cost for this cover is distributed as follows:
| Tankers carrying persistent oil as cargo: | USD 0.4859 per GT | |
| Tankers carrying non-persistent oil as cargo: | USD 0.2364 per GT | |
| Passenger vessels: | USD 0.3782 per GT | |
| Other dry cargo vessels: | USD 0.1984 per GT |
Furthermore, the Association has also elected to cover part of the retention below USD 5,000,000 to protect Members’ exposure.
Oil Pollution/United States Oil Pollution Surcharge for Tankers
The oil pollution cover provided by the Association for the Policy year 2002/2003 is as follows:
| Limit of Liability | USD 1,000,000,000 | ||||
| Declarations | Members have to declare all voyages by tankers each quarter in arrears. Forms for declarations will be made available to Members prior to the first declaration. The declarations are to be completed by May 20th 2002, August 20th 2002, November 20th 2002 and February 20th 2003 and returned to the Association. Tankers (including OOs and OBOs) carrying persistent oil any voyage will be regarded as carrying persistent oil for any such quarter. Members are advised to inform the Association immediately if a vessel, declared to the Association as not carrying persistent oil as cargo, is carrying a cargo of persistent oil. Members with OOs and OBOs declared as dry cargo vessels are advised to inform the Association immediately if vessels are carrying oil as cargo whether persistent or non-persistent. | ||||
| Persistent Oil | All hydro-carbon mineral oils other than the non-persistent oils. | ||||
| Non-persistent Oil | Oil which consists of hydro-carbon fractions:
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| Trading to the United States | Tankers carrying persistent oil as cargo and calling ports or places within the United States and United States Exclusive Economic Zone (EEZ) as defined by OPA 1990 for loading or discharging are subject to additional premium. The United States/U.S. EEZ includes the District of Columbia, Puerto Rico, Guam, American Samoa, U.S. Virgin Islands and Northern Marianas. | ||||
| U.S. Voyage | A U.S. voyage is any cargo voyage involving loading or discharging at any port or place in United States/U.S. EEZ as defined above. One cargo voyage involving loading or discharging at more than one U.S. port or place within U.S./U.S. EEZ shall be regarded as a single voyage. Discharging one cargo at a U.S./U.S. EEZ port or place and loading a new cargo at a U.S./U.S. EEZ port or place constitutes two voyages. | ||||
| Member’s Responsibility | The Member is responsible to report to the Association if any cargo of persistent oil has been loaded, discharged or transhipped in the United States or within the U.S. EEZ. The Member is also responsible to determine whether or not a cargo is persistent. The Association retains its right to ultimately decide whether a cargo is to be considered as persistent. |
Additional Premium U.S.
In respect of tankers carrying persistent oil in bulk as cargo, following additional premiums will apply 2002/2003:
| 1. | per voyage: | USD 0.102/GT (SBT: USD 0.09/GT) 50 % less if lightering in designated areas or calling at Louisiana Offshore Oil Port (0.051/0.045). | ||||||
| minimum GT: | 1,000 for calculation purposes. | |||||||
| max voyages: | no tanker will have to pay for more than 20 voyages. | |||||||
| 2. | small tankers: | Tankers of 1,000 GT or less may opt to pay per voyage as (1) above or a fixed annual premium of USD 2,040 (SBT: USD 1,800). | ||||||
| 3. | parcel tankers: | A parcel tanker is a tanker which is constructed or adopted primarily to carry cargoes of noxious liquid substances in bulk and which is capable of carrying at least ten grades of cargoes simultaneously, having been issued with an international certificate of fitness for the carriage of dangerous chemicals in bulk.
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| 4. | SBT-tankers: | Tankers equipped with segregated ballast tanks in accordance with the requirements of Regulation 13 of Annex 1 to MARPOL 73/78 will get a 10 per cent differentiation on above additional premiums. Thus, a call to the United States as per (1) above will be USD 0.09/GT, an annual premium as per (2) will be USD 1,800 and (3a) above will be USD 5,400. |
Summary
| Non SBT | SBT | ||
| USD and voy | USD and voy | ||
| 1 | Tankers > 1,000 GT LOOP / Lightering | 0.102/ GT 0.051 / GT | 0.09 / GT 0.045 / GT |
| 2 | Tankers 1,000 GT or less (or per annum | 102 2,040 p.a. | 90 1,800 p.a.) |
| 3a | Parcel tankers < 5,000 MT of cargo | 306 | 270 |
| 3b | Parcel tankers 5,001 – 10,000 MT of cargo | 768 | 560 |
| 3c | Parcel tankers 10,001 MT of cargo or more LOOP / Lightering |
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Limit of Liability
The overall liability of the Association for 2002/2003 is, unless otherwise stated in the Policy or in the P&I Rules, limited to a maximum collection of 2.5 % contribution of each entered vessel based on the International Convention on Limitation of Liability for Maritime Claims 1976, property claims Article 6 paragraph 1(b), in excess of reinsurance jointly placed by the International Group. (See also current P&I Rules, “Appendix”.) The limit of liability for Oil Pollution is USD 1,000,000,000.
P&I Rule Change – Rule 11 Section 5 “War Risks”
For 2002/03 the Association’s P&I cover has been amended to exclude “acts of terrorism”. Cover for terrorism is to be covered by the Member’s War Risk cover and is included in additional P&I War Risk cover as defined below. Rule 11:5 will be amended to read as follows:
There shall be no recovery from the Association for liabilities, costs or expenses arising from loss, damage, injury, illness, death or other accidents caused by
| (a) | war, civil war, revolution, rebellion, insurrection or civil strife arising therefrom, or any hostile act by or against a belligerent power, or any act of terrorism (provided that, in the event of any dispute as to whether or not, for the purpose of this paragraph (a) an act constitutes an act of terrorism, the Association shall in its absolute discretion determine that dispute and the Association’s decision shall be final), |
Additional Covers
P&I – War Risks
All Members entered for P&I are automatically covered for P&I War Risks subject to the following conditions:
| Conditions: | This policy is to pay claims for P&I risks as defined in the Rules of the Swedish Club, for which cover is excluded from vessel’s entry by reason of the War Exclusion clause contained therein, Institute Notice of Cancellation and War Automatic Termination of Cover Clause 1/10/83. |
| Trading: | Worldwide |
| Deductible: | USD 50,000 any one accident each vessel |
| Limit: | USD 200,000,000 any one accident each vessel |
| Excess: | This policy to pay claims only in excess of amount recoverable under vessels’ Hull and Machinery and Crew Marine or War Risks policies, and any P&I inclusion clauses attached thereto. Such a Policy shall cover the vessel’s proper value for hull and include a separate cover for liability up to the same amount or maximum USD 100,000,000. |
In this circular we have added information to our circular P&I 2405/2001 – first issue dated December 10th 2001.