Published 15 February 2024
Member Circular 20/2023
As the recently announced cancellation of war risks under a number of covers could potentially have a major impact on crew welfare, the Insurers have decided that Members and clients will be offered a special extension of cover for crew liabilities.
We refer to Member Circular No. 19/2023 (the Circular), issued by Gard P. & I. (Bermuda) Ltd., Assuranceforeningen Gard - gjensidig -, Gard Marine & Energy Limited, and Gard Marine & Energy Insurance (Europe) AS (together referred to as the “Insurers"), regarding Notice of Cancellation for war risks in the Red Sea area in respect of specified insurance covers.
P&I Insurance for MOUs, Crew Cover for Ships, Crew Cover for MOUs and Extended Crew Cover were identified in the circular as affected covers to which the Notice of Cancellation would apply. However, as a cancellation of war risks under the abovementioned covers could potentially have a major impact on crew welfare, the Insurers have decided that Members and clients will be offered a special extension of cover for crew liabilities which was excluded by way of the Circular in accordance with the Red Sea Extension clause set out below:
“Notwithstanding anything contained herein or in the applicable Rules/Terms and Conditions to the contrary, including but not limited to the Red Sea Exclusion clause, the contract of insurance evidenced by this Certificate of Entry/Insurance Policy is extended to include crew liabilities as defined in the Rules/Terms and Conditions governing the relevant Certificate of Entry/Insurance Policy but for the Red Sea Exclusion clause.
The Association’s/Insurer’s liability under this Red Sea Extension clause shall be limited to USD 10 million per Ship/Vessel per event or the applicable limit set out in this Certificate of Entry/Insurance Policy, whichever is the lesser. All other terms, conditions and limitations of the insurance remain the same.
The cover provided under this Red Sea Extension clause shall not cover any liabilities, losses, costs or expenses recoverable under any other applicable war risk insurance.”
The Red Sea Extension clause shall by virtue of this Circular be deemed to be added to the individual affected Certificates of Entry/Insurance Policies with effect from noon GMT 20 February 2024. No additional premium will be levied in respect of the Red Sea Extension.
If you have any questions please contact Audun Pettersen, Chief Underwriting Officer, Arendal.
Yours faithfully, GARD AS
Rolf Thore Roppestad Chief Executive Officer
Gard is a member of
