News

ALTERATIONS TO THE RULES OF THE ASSOCIATION

16 January 2017 No.16-018
As described in our circular of 22 November 2016 (No.16-015), the following alterations to the Rules of the Association (the "Rules") will become effective from 12 noon GMT on 20 February 2017 for the 2017 Policy Year.  There will also be an alteration to the Special Clauses.  The amendments are explained below, and extracts of the relevant provisions are attached hereto.

1. Alterations to the Rules

Rule 2-3 (Duties of Disclosure and Notification)
Rule 10 (5) (Continuation of  Insurance Contract)
Rule 11-2 (Cessation of Insurance Contract)
Rule 16-1 (5) (Maintenance of Classification and Compliance with Statutory Requirements)
The purpose of this alteration is to make it clear that notice to the Association by Members of any important information, which may affect the basis of the provision of insurance by the Association, has to be made in writing.  

Rule 19-1(6), (8), 2-(3), 4 and 4-(v) (Liabilities in Respect of Seamen)
The purpose of this alteration is to delete the provisions relating to the Maritime Labour Convention (MLC).  The 2014 Amendments to the MLC will be effective from 18 January 2017.  With the entry into force of the amendments to the MLC, the provisions with regard to the MLC will be deleted from the Rule and transferred to the Special Clause, which will be published before 18 January 2017.  For detailed information, please refer to our circular of 18 November 2016 (No.16-014).   

Rule 25-1(a) (Liabilities in Respect of Pollution)
The purpose of this alteration is to include the York Antwerp Rules (YAR) 1974 and 2016 in addition to the 1994 version.   The YAR 2016 were adopted by the Comite Maritime International (CMI) Assembly in May 2016.  After a review by the International Group of P&I Clubs (IG), it was recognised that there is still possibility that contracts incorporating the YAR1974 and 1994 may be used.  In such circumstances, the three versions of the YAR, i.e., 1974, 1994 and 2016, are all included in the Rules.

Rule 29-2(4)(c)(i) (Cargo Liabilities)
The purpose of this alteration is to clarify, in accordance with amendments to the IG Pooling Agreement, that proper delivery of cargo is required in the case of an electronic bill of lading just as with a conventional bill of lading, and that the Member is covered for mis-delivery claims even if delivery has been made to the person entitled to take delivery under the rules of the electronic trading system approved by the Association. 

Rule 35-1(7) (Risks Generally Excluded)
The purpose of this alteration is to narrow, in accordance with amendments to the IG Pooling Agreement, the drilling and production exclusion, by clarifying that whether the exclusion will apply will be judged on whether the connection with and/or disconnection from the well is pursuant to a contract.

Rule 35-2(7) (Risks Generally Excluded)
The purpose of this alteration is to add a new clause so that the Association can issue certificates in compliance with the MLC as amended.

2. Alteration to the Special Clauses

CHARTERERS (JOINT MEMBERS) LIMITATION CLAUSE
The purpose of this alternation is to modify a part of the wording while maintaining the intention of the clause.

CAPITAL INVESTOR CLAUSE
SPECIAL CLAUSE FOR VOYAGES AFFECTED BY SANCTIONS
The purpose of this alteration is to make it clear that notice to the Association by Members of any important information, which may affect the basis of the provision of insurance by the Association, has to be made in writing.  

SMALL TANKER OIL POLLUTION INDEMNIFICATION AGREEMENT 2006 (as amended 2017) (“STOPIA 2006 (as amended 2017)”) CLAUSE
TANKER OIL POLLUTION INDEMNIFICATION AGREEMENT 2006 (as amended 2017) (“TOPIA 2006 (as amended 2017)”) CLAUSE
P&I WAR RISKS CLAUSE
The purpose of these alterations is to record the revised names of the following agreements further to recent amendments : STOPIA (Small Tanker Oil Pollution Indemnification Agreement) and TOPIA (Tanker Oil Pollution Indemnification Agreement).