7 February 2020 TO ALL MEMBERS AND ASSUREDS Dear Sir or Madam 2020/2021 - Policy Year arrangements This Circular provides a summary of the following arrangements for the 2020/21 Policy Year. (1) Mutual Members* Rules As previously notified, a Meeting of the Members of Class 5 (P&I) was held on 29 January 2020. The proposed amendments to the Rules of the Class were approved and will take effect from noon G.M.T. on 20 February 2020. The Association’s P&I, FD&D and War Risks Rules for 2020/21 are available on our website which can be accessed here. International Group - Pooling and Reinsurance Arrangements Information on the IG’s pooling and reinsurance arrangements for 2020/21 can be accessed here. Mutual P&I Cover – Limits and Overspill Reinsurance For oil pollution claims, the limit of the Association’s aggregate liability will continue to be US$1 billion for any one occurrence. For Passenger/Seamen claims, its aggregate liability for any one occurrence will continue to be limited to US$2 billion in respect of liability to Passengers; and to US$3 billion in respect of liability to Passengers and Seamen. The overall limit of the International Group’s excess of loss contract is US$2 billion (in excess of US$100 million). The IG has once again purchased reinsurance for claims up to US$1 billion in excess of that limit, to protect mutual Members against the risk of overspill calls arising from any catastrophe claims up to US$3.1 billion. Full details are set out in the Class 5 (P&I) Rules including Rules 11 and 33, and as may appear in individual Certificates of Entry. * For Charterer Assureds and Assureds under the Owners’ Fixed Premium P&I Cover Policy, please see section (2) – Fixed Premium Assureds - below. - 2 Excess War Risks P&I Cover Excess war risks P&I cover will be provided to mutual Members in 2020/21, pursuant to Rule 15.3. The limit of the cover remains at US$500 million, any one accident; there is, however, a change to the definition of the excess. In summary, the minimum excess of the cover has increased from the proper value of the entered ship (as agreed by the relevant Association) or US$100 million whichever is less, to the proper value of the entered ship (as agreed by the relevant Association) or US$500 million whichever is the less. Further details of this change are contained in the information on the IG’s pooling and reinsurance arrangements for 2020/21, which can be accessed here. Members are also referred to the excess war risks P&I clause (20 February 2020) for full details of the cover, which can be accessed here. Bio-Chem Claims The excess war risks P&I cover for mutual Members referred to above is subject to the exclusion of bio-chem risks. However, some limited cover in respect of such risks will, once again, be provided by the Association and pooled with the other IG Clubs in excess of the 2020/21 Club retention of US$10 million. No additional premium will be charged for this cover, the limit of which in respect of all claims is in the aggregate US$30 million each ship any one accident or occurrence or series thereof arising from any one event. The cover is in respect of damages, compensation or expenses in consequence of the personal injury to or illness or death of any seaman; and for legal costs and expenses incurred for the purpose of avoiding or minimising bio-chem claims. To avoid excessive aggregation of risk, the cover is subject to cancellation on 24 hours’ notice. Full details can be accessed here.