The terms for War Risk Insurance for 2006 are outlined in this circular. The Association will continue the process of streamlining the cover to ensure a comprehensive insurance aimed at reducing costs for Members.

Features for 2006:

• Sum Insured – to correspond to the Hull and Machinery insurance value and/or any ancillary interests covered.
  
• Conditions – most major acceptable conditions for War Risks cover.
  
• Blocking & Trapping – Total Loss compensation paid after six months with Additional Expenses unless a total loss compensation has been made and/or never exceeding 180 days.
  
• Liability Cover (P&I) – independent limit for P&I risks up to insured values on Hull War and Hull Interest, if any, however never to exceed USD 140,000,000.
  
• Loss of Hire – maximum USD 50,000 per day in excess of seven days any one accident limited to 180 days (7/180/180) if agreed in advance and subject to additional AP for breaches.
  
• Trading Warranties – see currently List of Areas of Perceived Enhanced Risk on page 3.
  
• All vessels – subject to Notice of Cancellation, Automatic Termination of Cover, War, Nuclear etc. and Cyber Attack Exclusion Clause 2004-01-01 (W.1.3).
  
• Swedish Flagged Vessels – subject to Swedish Club Outbreak of War Clause (W.7.2).

Premium The agreed premium to be paid on January 1st 2006 or as agreed.

Cover

P&I Liabilities

War etc., P&I etc., Liabilities (Excluding Crew).

War Loss of Hire

Within Trading Limits:
Loss of Hire is included without additional cost on the basis of maximum USD 50,000 per day in excess of seven days each accident always limited to 180 days any accident and per year. Subject to trading warranties as per War Hull Cover. Higher daily amounts can be arranged.
Listed Areas:
Loss of Hire cover in Listed (“excluded”) areas can be arranged subject to advance notice given and premium to be agreed. Such cover is also subject to Additional Premiums and limits as applicable for excluded areas at time of breach.

Blocking & Trapping inclusion

Total Loss compensation after six months. Additional Expenses up to USD 25,000 during blocking & trapping in excess of seven days, however not recoverable after a total loss compensation been paid or not exceeding 180 days.

Limits

Unless otherwise agreed the Association’s liability is limited to the insured values for total loss of or damage to the vessel including additional expenses during blocking & trapping and loss of hire. Separate and independent limit of liability for P&I risks including crew liabilities up to insured values on Hull War and War Interest, if any, however never to exceed a limit of USD 140,000,000.

Notice of Cancellation, Automatic Termination of Cover, War, Nuclear etc. and Cyber Attack Exclusion Clause (W.1.3), included in all covers.

Swedish Flagged Vessels
Swedish flagged vessels will be subject to The Swedish Club Outbreak of War Clause – Hulls etc., (W.7.2), as enclosed. Non Swedish flagged vessels will be subject to the Notice of Cancellation, Automatic Termination of Cover, War, Nuclear etc. and Cyber Attack Exclusion Clause, (W.1.3), as enclosed, which is also deemed to be included in all covers relating to war risks.

Trading – List of Areas of Percieved Enhanced Risk “Listed Areas”
The insurance is valid world-wide, however with a General Cancellation Clause of seven days as regards trading warranties, with the following areas currently excluded. Trading to Listed Areas should be reported to the Association. If trading to a listed area is permitted, an additional premium may be required. The additional premium is decided in each case. (ref JW2005/001A wherein clause 2.c is not deemed deleted unless specifically agreed)

Definitions:

• Named Countries shall include their coastal waters up to 12 nautical miles offshore, unless specifically varied above
  
• Named Ports shall include all facilities/terminals within areas controlled by the relevant port authority/ies (or as may be more precisely defined by Insurers) including offshore terminals/facilities, and all waters within 12 nautical miles of such but not exceeding 12nm offshore unless specifically stated.

Africa:

The port of Algiers (Algeria)
Djibouti excluding transit
Ivory Coast
Nigeria
Somalia including waters out to 100nm or to the boundary with other countries’ territorial waters, whichever is the lesser

Asia:

Pakistan
Thailand, but only the area of the southern Gulf coast between the ports of Songkhla and Narathiwat inclusive

Indonesia/Malaysia:

The island of Ambon (Seram)
The port of Balikpapan (SE Borneo) including waters out to 25nm
Borneo, but only the north east coast between the ports of Kudat and Tarakan inclusive
The port of Jakarta
The port of Poso (Sulawesi)
The Malacca Strait, as defined overleaf

Middle East:

Bahrain excluding transit
Iraq, including all Iraqi offshore oil terminals
Israel
Lebanon
Qatar excluding transit
Saudi Arabia excluding transit

Philippines, but only:

Mindanao, between the ports of Polloc Harbour and Mati inclusive Sulu Archipelago including Jolo, as defined overleaf

Malacca Strait
The area enclosed between:

	a)	on the North Western end, a straight line between Laem Phra Chao (7°45′.5N, 98º18′.5E) and Ujung Baka (5º39′.5N, 95º26′.0E) and,
	b)	on the South Eastern end, a straight line between Tanjung Piai (1º15′.9N, 103º31.0E) and the light at (0º48′.0N, 103º8′.2E) (and continuing therefrom South South Westwards to the Sumatra mainland coast).

Sulu Archipelago
The area enclosed between:

	a)	on the Western side, a straight line between Tanjung Bidadari (5º49′.6N, 118º21′.0E) to position 3º32′.0N, 118º57′.0E
	b)	on the South Eastern side, a straight line from there to position 5º50′.0N, 122º31′.0E, and thence northwards to position 7º06′.6N, 122º31′.0E
	c)	on the Northern side, a straight line from there to Batorampon Point Light (7º06′.6N, 121º53′.8E)
	d)	and on the North Western side, a straight line from there back to Tanjung Bidadari.

Yours sincerely, The Swedish Club Claes Lindh