Statutes and Rules 1997 (December 1996)

Circular No. 9/96 December 1996

TO THE MEMBERS

Dear Sirs,

STATUTES AND RULES 1997

There are some alterations to the Association?s Statutes and Rules for the 1997 policy year. The amended Statutes and Rules come into effect at noon GMT on 20 February 1997.

The Statutes

Article 4 - The General Meeting The new Article 4.9 reads in English: The new Article 4.9 reads in Norwegian:

Since the Management Report is sent to all Members, there is no need to send a copy of the Norwegian version of the Association?s Annual Report and Accounts to the whole Membership even though this document is the Association?s formal Annual Report and Accounts for statutory purposes. The new Article 4.9 states that the Annual Report and Accounts in Norwegian will only be sent to Members on request.

The Rules for Ships

Rule 38 - Pollution The new Rule 38(b) reads:

The references to the TOVALOP Standing Agreement and TOVALOP Supplement have been deleted in view of the termination of the TOVALOP agreements with effect from 20 February 1997. Details of TOVALOP, ITOPF and CRISTAL were published in a separate circular sent out at the end of November.

Rule 40 - Liability for obstruction and wreck removal The new Rule 40(b) reads:

The cover encompasses liabilities incurred as a consequence of the Ship, as a result of a casualty, causing an obstruction even if the ship is not deemed to be a "wreck" (i.e. a total loss). The amendment is designed to clarify the scope of the cover in this situation.

Rule 42 - Salvors? expenses under Lloyd?s Standard Form of Salvage Agreement (1995) The new Rule 42 reads:

The amendment reflects merely the fact that Lloyd?s Standard Form of Salvage Agreement 1995 (LOF-95) has replaced Lloyd?s Standard Form of Salvage Agreement 1990 (LOF-90). LOF-95 incorporates further provisions of the 1989 Salvage Convention which have now been ratified by the required number of contracting states. The provisions of LOF-95 relating to claims for special compensation under Article 14 of the 1989 Salvage Convention are the same as in LOF-90.

Rule 43 - Towage

Note (c) to Rule 43.3(b) is amended to refer to LOF-95 instead of LOF-90. See the commentary to Rule 42 above.

Yours faithfully, ASSURANCEFORENINGEN GARD -gjensidig-

John G. Bernander Managing Director