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Special Circular MOU - Amendments to the Rules for Mobile Offshore Units (January 2000)

Published 31 December 1999

Special MOU Circular No 1/99 January 2000

TO THE MEMBERS

Dear Members,

AMENDMENTS TO THE RULES FOR MOBILE OFFSHORE UNITS (MOU)

The Association?s Rules for Mobile Offshore Units for the 2000 policy year which commences at noon GMT on 20 February 2000, contain some alterations to those applying for the 1999 policy year. Some of the changes are identical to the amendments in the Rules for Ships described in Circular No 18/99 which was sent to all Members in December 1999.

It ought to be noted that two new rules have been inserted. That is the new Rule 25 and the new Rule 26. The following rules have been renumbered accordingly.

Rule 2 The Cover

To harmonise the P&I cover for MOU with the P&I cover for Ships, it has been decided to introduce an Omnibus Rule.

The new Rule 2.4 shall read: Rule 8 Classification and Certification of the Vessel

To some extent the Rules for MOU mirror the Rules for Ships. For that reason the wording in Rule 8.1.f in the Rules for MOU is amended to correspond with the new wording introduced in Rule 8.1.f in the Rules for Ship.

The new Rule 8.1.f shall read:

Rule 22 Pollution

Against the background of the new Rule 26 (see below) the words "including fines" in the bracket are proposed changed to "excluding fines".

The new Rule 22 shall read (amendment in bold):

New Rule 25 Salvage

To further harmonise the Rules for MOU with the Rules for Ships a new Rule 25 has been included in the Rules for MOU with identical wording as the new Rule 42 in the Rules for Ships.

The new Rule 25 shall read as follows:

New Rule 26 Fines

Again for the purpose of harmonising the Rules, the existing Rule 27B (Fines) in the Rules for MOU has been deleted and replaced with a new Rule 26 with identical wording as the new Rule 47 in Rules for Ships (save that the word "Ship" has been replaced with "Vessel" for editorial reasons).

The new Rule 26 shall read:

The following Rules have been renumbered accordingly.

Rule 36 Other Excluded Losses (earlier Rule 34)

To adjust the Rules after the inclusion of the new Rule 25 (Salvage), Rule 36.1 c has been amended with a view to restrict the scope of the exclusion.

The new Rule 36.1 c) shall read (amendment in bold):

Rule 42 Nuclear Perils (earlier Rule 40)

Some equipment and substances customary used in the offshore industry contain low-radiation radioactive isotopes. To accommodate a need in the market, the scope of the exclusion in Rule 42 has been restricted. Thus, liabilities arising out of the use or presence on board the Vessel of such equipment and substances will fall within the cover provided such equipment and substance are carried, kept and used in accordance with governing rules and regulation.

The new Rule 42 shall read (amendments in bold):

Appendix II. Additional Insurances - War Risks

The sub-limit on the additional war risk cover (see Appendix II to the Rules for MOU) has been deleted. However, the aggregate amounts recoverable if any one incident involves both ordinary P&I and War Risk claims will be limited to the sum insured agreed in the terms of risks for the Vessel involved.

Yours faithfully, ASSURANCEFORENINGEN GARD -gjensidig-

John G. Bernander Managing Director

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