30 January 2014 TO ALL MEMBERS Dear Sirs Class 5 (P&I) 2014/2015 Policy Year arrangements This Circular provides an update on and a summary of the following arrangements for the 2014/15 Policy Year. Rules The Class Meeting, notified to Members in the Association’s Circular 5:487, was held on 29 January 2014. Amendments to the P&I Rules will take effect from noon G.M.T. on 20 February 2014 and can be accessed here. Members are reminded that the P&I Rules in full (together with the FD&D and War Risks Rules) can be accessed at http://www.londonpandi.com International Group (IG) - Pooling and Reinsurance Arrangements Details of the IG’s pooling and reinsurance arrangements for 2014/15 can be accessed here. US Oil Pollution Surcharge Reflecting the continuing improvement in the tanker record, the Group has followed a policy over recent years of reducing the voyage surcharge rate, with the eventual aim of reducing the surcharge to nil in the absence of any intervening major incidents. This policy has resulted in a year on year reduction in the amount of the premium collected through the surcharge and for 2014 the Group has decided to reduce the surcharge to nil. With effect from 20 February 2014 Members will no longer need to make US voyage quarterly declarations. Limits on Cover* and Overspill Reinsurance For oil pollution claims, the limit of the Association’s aggregate liability will continue to be US$1billion 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 IG’s excess of loss contract is US$2 billion (in excess of US$80 million). The IG has once again purchased reinsurance for claims up to US$1 billion in excess of that limit, to protect Members against the risk of overspill calls arising from any catastrophe claims up to US$3.08 billion. Full details are set out in the Rules including Rules 11 and 33, and as may appear in individual terms of entry. * For entries under Rule 10, Special Cover for Charterers, see overleaf. - 2 Excess War Risks P&I Cover The excess war risks P&I cover provided to mutual Members* in accordance with Rule 15.2 will again be provided in 2014/2015, on the same basis as for the current Policy Year. The limit of the cover remains at US$500 million, any one accident. Members are reminded that the cover is in respect of claims in excess of the proper value of the entered ship or of the amount recoverable from war risks underwriters or other interested insurers, whichever is the greater. Members are referred to the excess war risks P&I clause 20 February 2010 for full details of the cover (including the exclusions and termination provisions to which it is subject) which can be accessed here . * For entries under Rule 10, Special Cover for Charterers, see below. Bio-Chem Claims The excess war risks P&I cover referred to above remains subject to the exclusion of bio-chemical risks. However, some limited cover in respect of such risks will, once again, be provided by the Association and pooled with the other International Group Clubs. 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, compensati