North of England Club has provided Members with an update on a number of issues applying to Renewal and the new Policy Year.
The standard limit of cover under the Club’s reinsurance programme for Charterers remains at $350m for each event for all claims under any one Entry. (Alternative limits of cover may be agreed by the Managers and will be shown in the Certificate of Entry.)
The limit of cover for excess P&I War Risks cover provided by the Club in respect of an Owners entry will continue to be $500m for each event in excess of the entered ship’s value, or $100m, whichever is less, with the same aggregate limits as at present.
In view of the exclusion of bio-chemical risks from the excess P&I War Risks cover and in recognition of the absence of suitable underlying facilities in the insurance market, the Club will continue to provide cover which is pooled with the other Group Clubs on the same basis as in the current Policy Year, namely for:
- damages, compensation or expenses in consequence of the personal injury to or illness or death of any seaman (including diversion expenses, repatriation and substitution expense and shipwreck unemployment indemnity)
- legal costs and expenses incurred solely for the purpose of avoiding or minimising claims from bio-chem risks.
Cover is provided in excess of the Member’s usual deductible up to a limit of $30m for any one accident or occurrence or series of accidents or occurrences arising from one event per ship. This limit will apply to all interests (for example, Owners, Charterers and sub-Charterers) in each ship in the aggregate regardless of whether or not they are entered in different Group Clubs.
United States Terrorism Risk Insurance Act (TRIA)
At their meeting on January 17th the Directors resolved that cover for acts of terrorism as defined in TRIA would continue to be available. The Act applies only to certain ships entered in the Club. For them, a premium of 0.25¢ per GT would be deemed attributable to these risks and would be included within the overall premium.