We refer to circular number 01-005 dated 27 September 2001.

As indicated, International Group Clubs decided not to give seven day's notice of cancellation for the Group's war risk P & I cover at the same time as market war risk underwriters. The decision would be reviewed from day to day as events develop. In particular, Group Clubs were concerned that Club cover should, if possible, continue to protect Members as a whole and should not be unduly exposed either at the primary level or in any particular geographical area.

Members are reminded that this cover is not intended as a substitute for market war risk cover, but is provided on the basis that the protection is intended to pay claims only in excess of amounts recoverable under a Member's underlying war risk policy including P & I risks.

In the current circumstances, Group Clubs have decided that general notice of cancellation should now be issued. Members are therefore advised that this circular constitutes notice of cancellation of their war risk P & I cover. This notice shall run from 2400 hours GMT on 17 October, 2001.

Upon expiry of the notice at 2400 hours GMT on 24 October, 2001, cover will be automatically reinstated without, for the time being, payment of any additional premium on the condition that the Club's cover for war risk P & I shall be subject on reinstatement to an excess of the US dollar equivalent of "proper" value of the entered ship in accordance with Rule 35 2 (2) or the amount recoverable from war risks underwriters whichever is the greater, irrespective of whether or not any market war risk P & I cover is in place. The Directors will retain an absolute discretion to pay claims within this excess.