Executive summary
Excess War P&I cover – Background
The International Group’s Excess War P&I cover is to cover P&I risks as set out in the Association’s rules which are excluded from cover through the war risks exclusion in Rule 11 Section 5.
The cover is subject to an excess of the proper value of the entered vessel, or whatever sums are recoverable from other war risks covers. In this respect, the Association wish to remind its Members that this is an excess cover only and the need to have an underlying cover equal to at least the proper value of the ship with conditions equivalent to the cover above. Members must therefore maintain a primary war risks P&I cover with a minimum limit of the value of the entered vessel or USD 500 million, whichever is the less.
As set out in circular 2691/2023 dated 17 January 2023, the Excess War P&I cover has been renewed with effect from 20th February 2023 at rates included within the overall rates for the Group cover. However, due to the current conflict between Russia and Ukraine, the Reinsurance market has introduced a limited level of cover available for vessels operating in Russian and certain other Belarusian and Ukrainian waters.
This circular shall take precedence over any limits in respect of Excess P&I War cover noted in Certificates of Entry issued for the 2023/2024 policy year.
Protection & Indemnity Insurance 2023/2024 – Excess War P&I Cover
Enclosures to P&I Circular No 2694/2023
All Clubs in the Group have issued a similar circular.
