West of England has implemented few changes for its renewals for 2017/18.
In Class 1 (P&I), no standard surcharge will be applied to net advance call rates for mutual entries for Policy Year 2017. As usual, adjustments as necessary may be made to individual advance call rates to reflect particular claims experience and risk exposure. The forecast additional call to be set at inception will be unchanged from previous recent Policy Years. The forecast additional call for Policy Year 2017 will be 35% of the net advance call, equivalent to approximately 26% of the estimated total call (ETC). The release for Policy Year 2017 will be 20% of the net advance call (equivalent to 14.8% of the ETC) in addition to the forecast additional call set for the year.
Members’ fees for the Group’s excess of loss reinsurance programme will continue to be charged to Members separately, at cost per GT, “even though this means that the Club’s call and release rates cannot be directly compared with those set by other Group clubs.”
Premiums for charterers’ and owners’ fixed premium entries for Policy Year 2017 will only be adjusted to reflect individual Member’s risk exposure and claims experience. In addition, adjustments may also be applied to reflect the Club’s reinsurance arrangements, which have yet to be finalised.
Class 1 Deductibles for 2017/2018 will remain at $11,000, although where Members’ individual deductibles are below the Rules deductible an increase of 10% or $1,000, whichever is higher, will be applied. Further adjustments may be made to reflect individual risks or exposure.
Details of the IG Pooling arrangements, Group excess of loss reinsurance programme and related costs and terms will be advised in a separate Notice to Members once they have been finalised.
Limits of cover for oil pollution and non-oil pollution claims are likely to remain unchanged. Overspill protection is also likely to be provided on the same basis as for 2016.
Charterers’ entries will be covered for P&I risks either through the Club’s own Charterers Comprehensive Cover, which can include Damage to Hull and other risks, or through the Group’s Pooling and excess of loss reinsurance arrangements. Although the scope and terms of both covers have yet to be finalised they are likely to be similar to those which apply for 2016.
For War Risk P&I in 2017/18, West Of England noted that for several years the Club had automatically provided excess war risk P&I cover for both owners’ and charterers’ entries on terms that were fully reinsured with the commercial market for a limit of cover which is currently $500m in excess of a vessel’s proper value.
It is expected that this cover will be renewed, but on terms that have yet to be negotiated.
In Class 2 (FD&D) no general increase will be applied for Policy Year 2017. Mutual advance call rates and time charter / owners’ fixed premium rates will not increase, except where adjustments are required to reflect individual Members’ particular records and exposure.
The forecast additional call for mutual entries will be as for Class 1 above.
The deductible for Class 2 will, unless otherwise agreed, remain unchanged.