Amendment of Special Clause (2)
We refer to our Circular to members of 18th February, 2005 (No.04-015). In Paragraph 4 of that Circular, entitled "CHARTERERS (JOINT MEMBERS) LIMITATION CLAUSE", it was reported that "it was agreed that the limit of cover for the charterers who jointly enter with the Association under the shipowner's and/or the bareboat charterer's entry is to be the Limitation Amount". This represented a reduction in the cover available to such charterers, who had enjoyed the benefit of an additional cover of US$50 million in excess of owner's Limitation until the conclusion of the 2004 policy year. We are pleased to report that the Association has joined with several other International Group Clubs to purchase a collective reinsurance, so that the Association can provide the level of cover for 2005 policy year as same as for 2004 policy year.
In light of this reinsurance arrangement we have amended the newly established "CHARTERERS (JOINT MEMBERS) LIMITATION CLAUSE" as follows:-
Charterers (Joint Members) Limitation Clause
| 1. | 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 ("threlevant contract") in the terms of Rule 15 shall be the following:- | |||
| (1) | Oil Pollution | |||
| i | 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) | an amount equal to US$50 million (US$50,000,000) in excess of the limitation amount: or | |||
| (b) | US$1billion (US$1,000,000,000). | |||
| ii | 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). | |||
| iii | Clause 3 of Oil Pollution Liability Limitation Clause shall apply to this Clause. | |||
| (2) | Other Claims | |||
| 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) | an amount equal to US$50 million (US$50,000,000) in excess of the limitation amount; or | |||
| (b) |
US$300million (US$300,000,000). |
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| 2. | "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. | |||