As described in our circular No.22-016 dated 28 November 2022, the following alterations to the Rules of the Association (the "Rules") will become effective from 12 noon GMT on 20 February 2023 for the 2023 policy year. There will also be an alteration to the Special Clause. The amendments are explained below, and extracts of the relevant provisions are attached hereto.

1. Alterations to the Rules

Rule 6.1･2 (CALLS AND PREMIUM)
Rule 7.1･2 (PAYMENT OF CALLS AND PREMIUMS)
Rule 9.1 (CLOSING OF POLICY YEAR)
To address introduction of the new basis for charging calls, namely the “Mutual Premium system”. This will replace the current “Supplementary Call system.” Under the new Mutual Premium system, the estimated total premium for any given policy year will be charged as “Mutual Premium,” instead of the conventional “Advance call”.

Rule 10.4 (CONTINUATION OF INSURANCE CONTRACT)
To make it clear that (a) & (b) of the current Rule 10 (4) is better placed under Rule 11.3(3) & (4), as this enables the Association to cancel the contract of insurance without having to serve one month’s notice upon Members of concern.

Rule 11.3 (CONTINUATION OF INSURANCE CONTRACT)
Grammatical error correction.

Rule 19.1(5) (LIABILITIES IN RESPECT OF SEAMEN)
To clarify that costs falling within the Club’s cover as regards seamen’s wages are limited to an overtime allowance paid solely as a consequence of the deviation.

Rule 25.1 (LIABILITIES IN RESPECT OF POLLUTION)
To add “other ship” as a source of escape or discharge of oil, which was previously missing.

Rule 26.1(1)(2) (TOWAGE LIABILITIES)
The amendments are in line with the amendments to the Pooling Agreement: one is to include the Supplytime form among the acceptable contracts in relation to towage by an insured vessel, and the other is the removal from the “knock for knock” arrangements reference to loss of life and personal injury on the relevant party’s vessel.

Rule 31.2(6) (FINES)
The amendment is in line with the amendment to the Pooling Agreement, which sets out the criteria to be applied before a claim arising from confiscation can be paid.

Rule 35.1(8) (RISKS GENERALLY EXCLUDED)
The amendment is in line with the amendment to the Pooling Agreement. It has been agreed that the excluded activities include mining.

2. Alteration to the Special Clauses

CHARTERERS (JOINT MENMERS) LIMITATION CLAUSE
The amendment is in line with the amended arrangement of the reinsurance program. The insurance coverage amount afforded to Charterers/Joint members under the clause has been increased from US$350 million to US$500 million.

A Rule Book for the 2023 Policy Year is scheduled to be posted on our website in the middle of February 2023.