Published 14 February 2002
Circular No. 9/2001 February 2002
TO THE MEMBERS OF ASSURANCEFORENINGEN GARD -gjensidig-
Dear Sirs,
RE: War Risk P&I Cover 2002 in respect of owners' and charterers' entries reinsured under the International Group's Pooling Agreement
We are pleased to inform the Members of the Association that the International Group Clubs' additional war risk cover has been placed for the 2002 policy year commencing on 20 February 2002. This insurance is arranged and paid by the P&I Clubs for the benefit of Members who have effected owners' entries (including bareboat or demise charterers' and operators' entries) in respect of standard P&I risks. As far as charterers' entries reinsured under the International Group's Pooling Agreement are concerned, the additional war risk cover functions as a primary cover.
The additional war risk insurance will cover P&I risks as defined in the Association's Rules for P&I and Defence Cover for Ships and Other Floating Structures (the 'Rules'), for which cover is excluded from the vessel's terms of entry solely by reason of the war risk exclusion as set out in Rule 58 of the Rules. For the 2002 policy year the additional war risk cover is limited to USD 200 million (note: the limit was USD 100 million for the 2001 policy year) in excess of the proper value of the entered ship or any amounts recoverable under any other P&I war risk cover which the Member has arranged, whichever is greater. The proper value of the ship is determined in accordance with Rule 71.1(a), although for the purpose of this excess war risk cover this is deemed not to exceed USD 100 million. The cover is subject to a deductible of USD 50,000 per ship per event.
It ought to be emphasised that this additional war risk cover is an excess cover only. It is not intended to be a substitute for the Member's primary P&I war risk cover, whether arranged with his hull and machinery insurer or with another insurer, which the Member should effect with a minimum limit of the proper value of the ship. If the Member has effected P&I war risk cover in excess of the proper value of the ship, either by opting for a higher limit on his primary cover or by purchasing additional cover, the Association's P&I war risk cover will still apply only in excess of the amounts recoverable under all of the other P&I war risk covers.
This additional war risk cover is subject to the Association's Rules to the extent the context allows and the attached Notice of Cancellation, Automatic Termination of Cover and War and Nuclear Exclusion Clause Hull. This means that the cover can be terminated upon the Association giving 7 (seven) days notice of its intention to do so. In certain circumstances the cover will terminate automatically.
Yours faithfully, GARD SERVICES AS As agent only for Assuranceforeningen Gard - gjensidig
Claes Isacson Chief Executive Officer
Gard is a member of
