North warns on ability to assist members in Iran-related cases

In a just-published FAQ on the recently re-imposed US sanctions against Iran, North P&I Club has warned that “the ability of the Club to assist its Members is severely compromised by the U.S. sanctions”. North said that making any payments to or from Iran was extremely difficult and that “Members should not expect the Club to be able to provide its usual level of support. It is difficult to foresee circumstances in which the Club would be able to provide security.” This was in response to the question: ” Where the cargo is not sanctionable, the parties involved are not targeted and there is no other sanctions issue, will the Club be able to provide its usual level of support?”

Referring to the impact of the EU blocking legislation, North said that “the reimposition of US sanctions and revocation of General License H also impacts on the ability of US-owned or US-controlled foreign reinsurers who participate on the International Group Excess Loss Reinsurance (GXL) programme to pay Iran-related claims”. This meant that there was a risk of a reinsurance shortfall. If there was such a shortfall then North noted that the Club’s Rules provided that the Club was not liable to a Member for any part of the claim it could not recover.