Skuld has published the International Group arrangements for War Risks P&I Excess Cover for the upcoming policy year. Although war risks are excluded from standard P&I cover Skuld P&I and other P&I Clubs in the International Group will provide War Risks P&I Excess Cover on the same basis as in the 2015/16 policy year for Members entered on a full mutual basis.
The limit of cover remains at $500m. The cover is subject to an excess of the proper value of the entered vessel, or whatever sums are recoverable from other war risks covers, whichever is the greater. The minimum excess is the proper value of the entered vessel or $100m, whichever is the smaller. The cover is subject to a deductible of $50,000 for any one event on any one vessel.
Skuld notes that this is an excess cover only. “Members must maintain their primary war risks P&I cover with a minimum limit of the value of the entered vessel or $100m.”
If Members choose to insure for amounts in excess of the value of the vessel, the cover provided by the Association will apply in excess of the total amounts recoverable under all other P&I war risks policies. The limit of $500m is subject to aggregation.
Bio-Chem Pool
The War Risks P&I Excess Cover is subject to a bio-chem exclusion. In order to provide a degree of cover to Members, the P&I Clubs in the International Group agreed in 2004 to cover bio-chem risks relating to crew claims and for legal costs relating to other P&I liabilities. This arrangement will continue in the 2017/18 policy year. Cover is provided through a special pooling arrangement and is subject to a limit of $30m in the aggregate.