No General Increase at Japan Club for 2019/20

Japan P&I Club will not impose a general increase for policy year 2019/20. The club board met in Tokyo on November 27th to review open policy years, decide on the 2019 renewal and adopt proposed alterations to the Rules of the Association.

The Club said that the total number of vessels entered with it had been maintained at 4,284 – 95.30m gt in the aggregate.

The loss record for ocean-going vessels (mutual entries) began favourably this policy year, but the loss record of coastal vessels (Naiko Class, fixed premium entries) had not been positive. The Club said that, considering the tendency of claim occurrence to increase during the winter season, the situation remained stable.

Calls and Premiums

Owners’ Entries

Policy YearOriginal Estimated Supplementary CallPaid Supplementary CallBoard’s DecisionRelease Call
201540%30%ClosedClosed
201640%30%Further supplementary call was reduced to 0%.5%
201740%0%40% of the supplementary call will be levied for payment by 31 January 2019.5%
201840%0%Remain unchanged.45%
201940%No general increase45%

2019 Policy Year

There will be no general increase in advance call rates for owner’s entries. Call rates may be adjusted, where necessary, in relation to any change in the cost of the International Group Excess Loss Reinsurance Contract. In addition, Members will be individually underwritten in the light of the above adjustment, if any, and their claims record. The estimated supplementary call was set at 40% of advance call, and the release call at 45%.

Past Policy Years

2015 Policy Year The original supplementary call estimate was 40%. In January 2017 supplementary calls of 30% were levied. The Board decided to close the year without a further supplementary call. 2016 Policy Year No significant change anticipated in the future. The originally-estimated supplementary call of 30% was levied in January 2018 against the original estimated figure of 40%. In view of the present situation, the board decided that a further supplementary call will be changed to 0% and the release call rate to 5%, with the year remaining open.  2017 Policy Year The policy year’s loss record was 98.5%. No significant change anticipated in the future. The Board has decided that a supplementary call of 40% will be levied as the original estimated figure, in view of the present situation. The further estimated supplementary call rate was reduced to 0% and the estimated release call rate was reduced to 5%.   2018 Policy Year The original supplementary call estimate was 40% and the release call was 45%. The position for this year remains unchanged. Charterers’ entries 2019 Policy Year There will be no general increase in premiums for charterers’ entries. FD&D cover 2019 Policy Year There will be no general increase in advance calls for FD&D cover. The estimated supplementary call was set at 20% of the advance call, and the release call at 25%. Past Policy Years 2015 Policy Year The original supplementary call estimate was 20%. The Board decided to close the year without levying the estimated supplementary call of 20%. 2016 Policy Year It is expected that there will not be significant change in the future. The estimated supplementary call of 20% and release call rates of 25% for the 2016 Policy Year remain unchanged. 2017 Policy Year The estimated supplementary call of 20% and release call rates of 25% for the 2017 Policy Year remain unchanged. 2018 Policy Year The estimated supplementary call of 20% and release call rates of 25% for the 2018 Policy Year remain unchanged. Naiko Class entries 2019 Policy Year There will be no general increase in premiums for Naiko Class entries.

https://www.piclub.or.jp/en/news/26816

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