Report on the 609th Meeting of the Board of Directors

19 January 2022 No. 21-014

To the Members

On 14 January 2022, the 609th Meeting of the Association’s Board of Directors resolved to amend Rule 37 of the Rules of the Association and to introduce a new special clause entitled “WHO Communicable Disease Exclusion Clause” with effect from 20 February 2022.


Change to Rule 37 - Limitation of Coverage

Following the recommendation of the International Group, a new section of Rule 37 (Rule 37.6) will be added whereby the Association is given the right, but not the obligation, to prioritise certified claims and other direct liabilities over uncertified claims.


New Special Clause - WHO Communicable Disease Exclusion Clause

Due to the requirements of the global reinsurance market, there have been changes in the terms and conditions of reinsurance arranged by the Association from the 2022 policy year. A new special clause entitled “WHO Communicable Disease Exclusion Clause” (which replaces the existing Coronavirus Exclusion Clause) and the existing Marine Cyber Exclusion Clause will form part of the contract for all insurance entries, special covers and other additional insurance policies (policies incepting on or after 20 February 2022), except for mutual entries.


The WHO Communicable Disease Exclusion Clause excludes cover for costs and expenses directly arising from the transmission of any communicable disease declared as a Public Health Emergency of International Concern (PHEIC) by the World Health Organization (WHO) or from any fear or threat of such communicable disease, expenses related to quarantine, and other economic losses, etc.


The exclusion applies from the time the WHO declares that an outbreak of a communicable disease is a PHEIC, and will remain in effect even if the WHO rescinds, reverses, or otherwise nullifies its PHEIC declaration. At the moment, therefore, the exclusion will apply in respect of the following six communicable diseases: Swine flu (2009), Polio (2014), Ebola (2014), Zika virus (2016), Ebola (2019) and COVID-19 (2020).


Please see attached extracts of the relevant provisions and let us know if you have any questions on these changes.