American Club Circular No. 33/12 1 NOVEMBER 26, 2012 CIRCULAR NO. 33/12 TO MEMBERS OF THE ASSOCIATION Dear Member: THE ATHENS CONVENTION/EU PASSENGER LIABILITY REGULATION (PLR): SAFEGUARD GUARANTEE COMPANY LTD: “WAR PASSENGER BLUE CARDS” Members are referred to Circular No. 24/12 of September 25, 2012 which contained an update on the entry into force of the Regulation (EC) 392/2009 of the European Parliament and of the Council of 23 April 2009 on the Liability of Carriers of Passengers by Sea in the Event of Accidents (PLR). As mentioned in that circular, all clubs in the International Group have agreed to provide the required non-war risk PLR “blue card” to enable owners to apply to EU/EEA member states for PLR certificates in advance of December 31, 2012. In conjunction with this, it has been agreed that claims arising under the non-war risk blue cards will be poolable within the International Group’s pooling and reinsurance arrangements subject to the $2 billion limit placed by the International Group on passenger claims. As mentioned in Circular No. 24/12, owners will also be required to obtain a war risks blue card which will be signed by an insurer or other provider of financial security who will in effect guarantee the owner’s liability to passengers for injury and death arising out of acts of war and terrorism. The form and procedure for the war risks blue card are contained in the 2006 IMO Guidelines. Since there was not a majority of Group clubs in favor of including cover for war and terrorism risks going forward, alternative arrangements have emerged to ensure that operators of passenger vessels subject to the new regime are in a position to comply. As will be recalled, your Managers undertook to keep Members fully informed of developments in this regard. To this end, your Managers attach hereto details of an insurance and guarantee facility to cover war and terrorism liabilities which fall outside the scope of regular P&I insurance. The facility is being offered by Safeguard Guarantee Company Ltd (Safeguard), a wholly owned subsidiary of Gard P&I (Bermuda) Ltd (Gard). Safeguard will issue a separate guarantee, known as the “war passenger blue card” which will cover owners against third party claims for the first SDR250,000 per passenger for these risks with an overall limit of SDR340 million per vessel, per event. As will be noted, the new insurance and guarantee cover will be available for any owner regardless of whether or not the vessel(s) in question are insured in Gard for P&I risks. Members who require such documentation in addition to the non-war blue card, which will be issued by the Club itself in due course, are requested to note the existence of this facility and the services it provides, all of which are described in detail in the attached document. Further developments, including the development of other facilities for this purpose, will be reported to Members as they occur. In the meantime, your Managers will be pleased to respond to any enquiries which Members may have in regard to the Safeguard initiative, or in reference to this subject generally. Yours faithfully, Joseph E.M. Hughes, Chairman & CEO Shipowners Claims Bureau, Inc., Managers for THE AMERICAN CLUB 1 Gard AS, P.O. Box 789 Stoa, NO-4809 Arendal, Norway Tel: +47 37 01 91 00, Fax: +47 37 02 48 10, Outside office hours: +47 90 52 41 00 For and on behalf of an entity of the Gard Group comprising, inter alia; Gard P. & I. (Bermuda) Ltd, Assurancefore