Amendment of Special Clauses
18 February 2005 No.04-015
Please be advised that according to the mutual consents of the International Group of P&I Clubs, the following Special Clauses are to be partly or completely amended and to be applied for 2005/6 policy year.
*** Charterers (Joint Members) Limitation Clause
- P&I WAR RISKS CLAUSE
The limit of cover under this Clause, which is mentioned in Clause 3(1) of this Clause, is to be increased from US$400m to US$500m for 2005/6 policy year.
- BIO-CHEM CLAUSE
The limit of cover under this Cluase, which is mentioned in Clause 2(1) of this Clause, is to be increased from US$20m to US$30m for 2005/6 policy year.
Due to the close of Athens Olympic, the provision regarding the area relating to the Olympic, which was set out in Clause 3 of this Clause is to be deleted and the numerical order of the following Clauses is to be amended accordingly.
- CHARTERERS LIMITATION CLAUSE
So far the limit of cover applying the charterer member who independently enters with the Association under provisions of "Special Cover for Charterers" was based on US$50m in excess of the applicable owner's limitation amount but with further limits for oil pollution claim and non-oil pollution claim as well as aggregate limits where there were multiple charterers' entry for the same ship, and was complicated.
As a result that the International Group has considered this matter to simplify the clause, it was agreed that for 2005/6 policy year, the cover for the above charterers is to be a combined single limit of US$350m for all risks in respect of one vessel any one accident or occurrence. According to this, the Association has decided to abandon this Clause and to simply put the amount of US$350m on the Certificate of Enrty.
- CHARTERERS (JOINT MEMBERS) LIMITATION CLAUSE
Furthermore, the International Group has also consider how to deal with the charterers who jointly enter with the association under the Shipowner's and/or the bareboat charterer's entry, and it was agreed that the limit of cover for such joint members is to be the Limitation Amount but not exceeding US$1,000m any one accident or occurrence for oil pollution claims and US$300m any one accident or occurrence for non-oil pollution claims. Accordingly, the Association has decided to newly lay down the attached Clause.
- The limit of the cover in terms of Rule 37.4 afforded to charterers who jointly enter with the Association ("the relevant charterers") under the shipowner's and/or the bareboat charterer's insurance contract ("the relevant contract") in the terms of Rule 15 shall be the following:-
(1) Oil Pollution
- The Association's liability for oil pollution claims by, or in respect of the relevant charterers shall, in respect of each accident or occurrence relating to each entered vessel, be limited to the lesser of:
(a) the limitation amount; or
(b) US$1billion (US$1,000,000,000).
- The Association's liability for oil pollution claims by or in respect of all joint members within the relevant contract shall not exceed in the aggregate of US$1billion (US$1,000,000,000).
- Clause 3 of Oil Pollution Liability Limitation Clause shall apply to this Clause.
- "Limitation amount" means the amount to which the owner of the entered ship could have limited its liability in respect of the relevant matter if it had sought, and not been denied, the right to limit under any applicable international convention or under any rule or law analogous to any international convention relating to limitation of liability. Where there is more than one charterer on a Certificate of Entry, those charterers together shall be subject to a single limit of liability as if there had been only one charterer on the Certificate of Entry.
The Association's liability for claims other than oil pollution, by or in respect of the relevant charterers, shall be limited each accident or occurrence relating to each entered vessel to whichever is the lesser of:
(a) the limitation amount; or
(b) US$300million (US$300,000,000).