UK Club subsidiary, UK P&I Club NV will be writing P&I risks located in the European Economic Area (EEA) from September 20th, the club has told members.
Following the 2016 referendum result supporting the UK leaving the EU the UK P&I Club announced its intention to establish a new European subsidiary in the Netherlands – UK P&I Club NV – to ensure that cover could be provided to Club Members with risks located in the EEA.
In Circular 5/19 the Club notified Members that, in the event that Brexit was substantially delayed, UKNV might decide to commence underwriting EEA risks before the date of Brexit. “Given the continuing uncertainty, it has been decided that UKNV should commence underwriting new EEA risks from the 20th September 2019”, UK Club said.
The Club noted that the location of P&I risks would be determined under EU regulations on the following basis:
- Owned entries – by flag state of vessel
- Chartered entries – by flag state of vessel if the vessel is identifiable at time of entry; otherwise by the country in which the charterer is incorporated.
Club Members with no EEA risks would be unaffected by the change and would continue to be insured by and receive certificates of entry from the Club’s London based holding company –The United Kingdom Mutual Steam Ship Assurance Association (Europe) Ltd (UK P&I Club (Europe)).
Members who insured EEA risks under contracts with the Club entered into after September would be insured by and receive certificates of entry from UKNV. The Club noted that ships comprising EEA risks that were already entered in the UK Club before 20 September will remain insured by the UK P&I Club (Europe) until renewal.
There will be a change of banking details for payment of premium in respect of ships insured by UKNV. These changes will be communicated separately to all Members affected. However, where Members receive notification of a change in bank accounts purporting to be from the Club, the Club recommended that Members seek verbal confirmation from their usual Club contact of the changes before making any payment.