As described in our circular No.24-015 dated 6 December 2024, the following alterations to the Rules of the Association (the "Rules") will become effective from 12 noon GMT on 20 February 2025 for the 2025 policy year. There will also be an alteration to the Special Cover and Special Clause, as well as the establishment of a new Special Clause. The amendments are explained below, and extracts of the relevant provisions are attached hereto.

1. Alterations to the Rules

Rule 12 (RAID-UP RETURNS) 1
The definition of a period of absence from service has been clarified to state that, in principle, periods during which a vessel is undergoing inspections, repairs, alteration works, detention, etc., are not included in the period of absence from service, except in cases approved by the union. This is due to the handling of reinsurance premiums, for which the International P&I Group (IG) will align its response, and the wording of the provision will be changed accordingly.

Rule 29 (CARGO LIABILITIES) 2 (5)
Liability or costs arising from the use of electronic commerce systems, so-called electronic B/Ls, are covered on the condition that the system has been approved by the Association. Until now, each system had to be examined individually and the decision to approve or disapprove the system in question had to be made separately. However, since electronic B/L has been legally approved in the UK and other countries and the number of systems in use has increased, certain requirements have been set and those that meet these requirements will be deemed to have been approved by the Association.
In order to make this a common response in the IG, the wording of the provisions was reorganised accordingly, following the revision of the Pooling Agreement from the 2025 policy year.

2. Alteration to the Special Cover

SPECIAL COVER FOR FREIGHT, DEMURRAGE AND DEFENCE (FD&D) 10
As the FD&D Special Cover is a product covering disputes involving ocean-going vessels, the limit of cover is now expressed in US dollars and will be changed from JPY 1.5 billion to USD 10 million. In addition, a separate coverage limit of USD 2 million has been added for disputes relating to the building, purchase, sale, mortgage of an Entered Ship, or negligent or improper repair of or alteration to an Entered Ship. The reason for this is that these disputes are often protracted and often lead to arbitration and litigation, which may lead to high dispute costs, and therefore the limit on the amount of compensation is considered necessary for the stable provision of the FD&D Special Cover.

3.　Alteration to the Special Clauses

BIO-CHEM CLAUSE 1
The amendment is to exclude the application of this clause to the Special Cover for Charterers. This special clause applies to IG reinsurance contracts, but is deleted as it does not apply to the Special Cover for Charterers, as the Association has its own reinsurance arrangements for the Charterer’s Liability Insurance separately from IG reinsurance.

P&I WAR RISKS CLAUSE 3
Changes to coverage limits due to changes in Excess War P&I conditions from the 2025 policy year. Currently, the limit of Excess War cover for vessels navigating the waters around Russia, Ukraine and Belarus is USD 80 million, but this will be increased to USD 100 million from the 2025 policy year.

P&I WAR RISKS CLAUSE FOR SPECIAL COVER
A new P&I War Risks Special Clause for various Special Covers is being established. The existing P&I War Risks Special Covers are based on clauses in IG reinsurance policies and apply to ocean-going vessel policies covered by the IG reinsurance programme. However, for the various Special Covers that are not covered by the IG reinsurance programme, the Association’s own reinsurance is arranged and different terms and conditions apply to war risks than those in the IG reinsurance contract, therefore, a new P&I War Risks Clause for Special Cover is being established to match the relevant terms and conditions.

A Rule Book for the 2025 Policy Year is scheduled to be posted on our website in the middle of February 2025.