We are providing members with updates on a number of issues applicable to Renewal and the new Policy Year. International Group Reinsurance The General Excess of Loss Reinsurance Agreement of the International Group has been renewed, and the details of this renewal have been notified to the Members with the Club Circular no 2023/003 dated 18 January 2023. Owner Entries Owner's P&I coverage will continue to be subject to the following specific limits pursuant to Rule 22:- • Oil pollution: $1 billion in total for all claims arising from any incident under each Owner's entry relating to a Ship entered. • Passengers and seafarers together: $3 billion in total for all claims arising from any incident related to all Owner entries for a Vessel entered. • Passenger : $2 billion in total for all claims arising from any incident related to all Owner entries for a Vessel entered. Renter Entries The standard margin of coverage under the Club's reinsurance program for entries by Independent Charterers will remain, per the Rules, at US$350 million per event for all claims under any Entry. However, alternative margin limits can be agreed upon by Managers and will be shown on the Entry Certificate. The club's website, nepia.com, details the comprehensive coverage package available to Charterers. However, for Affiliated Charterers who are called co-insured under a Shipowner entry, GXL reinsurers have agreed to increase the total coverage limit from $350 million to $500 million, which is the combined single limit for all pollution and non-pollution claims. Extreme P&I War Risks As part of the renewal of the Group's 2023 Policy Year GXL Agreement, the War Risk Exceeding P&I coverage was also renewed for a period of 12 months, with costs included in the total prices received from Members. The terms under which Extra War Risks P&I Coverage will be provided for Policy Year 2023 are the same as for Policy Year 2022, including a $500 million coverage limit for each event. The minimum excess of the policy remains at the eligible value of the Ship Entered or $500 million, whichever is less. Accordingly, Members are liable for P&I risks, including Crew, of Ship Entered or US$500 million, whichever is less. Therefore, Members are deemed to have basic security with such terms at least equal to the eligible value of the Vessel Entered. In addition, the Group's collateral exceeds any collateral that the Member has actually received and covers the risk, unless the collateral is a corporate general liability umbrella guarantee. Members are also reminded that where payment made by the Club under a guarantee or certificate relates to war risks, Members will indemnify the Club to the extent that such payment is recovered or can be recovered under a standard P&I War Risk policy. Coverage limits for P&I War Risks for Charterer Entries will be as set forth in each Member's individual entry conditions and coverage will exceed the Member's eligible exemption with the Club. Regional Exceptions As stated in our Circular Ref: 2023/006, as a result of the narrowing of the coverage provided by reinsurers, a change was made in the current coverage level for vessels operating in all Russian waters, including coastal waters up to 12 sea shores. kilometers offshore and in certain Belarusian, Ukrainian and European waters as specified in the said Circular. However, limited coverage of up to US$80 million per vessel has been provided for vessels transiting and/or calling in from these regions. However, this lower limit remains in excess of the amounts recoverable under Shipowners' war risk policies, subject to the minimum eligible hull value or US$500 million, whichever is lower. Excess Combat P&I coverage is maintained with a limit of $500 million for all ships when trading in all other waters. In addition, it should be noted that this limited "buyback" only applies to mutual security under Rule 24 for Shipowners and does not cover other Non-Docking risks provided to Charterers under the same Rule. As explained in our Circular Ref: 2022/033 of December 23, 2022, any "buyback" for such risks must be separately discussed and agreed with the Club's Insurance Department. Biochemistry Risks As first recommended in the Club Circular of March 1, 2004, biochemical risks are not covered by Extreme P&I War Risks and due to the lack of appropriate core facilities in the insurance market https://nepia .com/circulars/bio-chem-risks/ , Club, will continue to provide coverage combined with other Group Clubs on the same basis as the current Policy Year, i.e. without paying any additional premiums for:- i) damages, compensation or expenses incurred as a result of the personal injury or illness or of any seafarer ; And ii) legal costs and expenses incurred solely to avoid or minimize claims arising from Bio-chem Risks. Cover is provided in excess of the Member's usual exemption amount, up to a limit of US$30 million for any accident or incident resulting from an incident on each ship or a series of accidents or incidents. This limit will apply to all beneficiaries on each ship, regardless of whether or not they are entered into different Group Clubs. The guarantee is subject to cancellation with 24 hours' notice, and areas with special risk may be excluded from the coverage by the Management's decision. There are currently no excluded fields. United States Terrorism Risk Insurance Act At its meeting on February 15, 2023, the Board of Directors decided to continue applying the coverage for terrorist acts as defined in the TRIA . available. The law only applies to certain vessels registered with the Club, but for those eligible, a premium of 0.25 US cents per GT will be considered attributable to these risks and included in the overall premium. Eligible Members have been given a separate, more detailed notice. Heavy Fuel Oil Cargoes Following renewal, Members will be obliged to declare to the Club which of their ships have carried heavy fuel oil as cargo in the last 12 months. This has been a requirement since February 2006 and may result in surveys of Members' ships. Circulars Members are reminded that they must do their best to comply with the provisions of Rule 32 of the Club Circular and any advice made by the Circular. Copies of all Circulars can be viewed or downloaded from the "Circulars" section of the Club's website at nepia.com. Extended and Ancillary Coverages The club's website, nepia.com, details extended and ancillary coverages available to Members for the Policy Year 2023. The reinsurance program underlying many of the club's ancillary coverages is structured to provide flexibility and diversity, specifically to meet Members' non-compoundable insurance requirements. Fixed Premium Covers – Malicious Cyber ​​and Covid Exceptions As in Policy Year 2022, the Club's reinsurance arrangements for coverages outside of Group Poolable coverage will continue to be subject to exemptions for claims arising from Malicious Cyber ​​and Infectious Diseases. The Directors have agreed that the Club will continue to provide limited coverage for Members and Insured under current coverage. Consequently, the exclusion for Infectious Disease risks will not apply until the sum of liabilities, losses, costs and expenses that would otherwise be excluded pursuant to JL 2021-014 total $5 million per vessel. each event is limited, however, to a total maximum of $5 million per fleet per year, as always defined in accordance with Rule 10. Malicious Cyber ​​exclusion will remain the same as in 2022 and Members' entry conditions will not be changed. No coverage will be provided by the Club for Malicious Cyber ​​risks associated with fixed Premium logins. Cover Summary In addition to the 2023 Policy Year Entry Certificates, a Guarantee Summary will be given to ships entered by Shipowners. This document is designed to be retained on ships and displayed to port state authorities as proof of the existence of P&I coverage for debris removal and oil pollution. However, it should be noted that this document does not form any part of the Insurance Agreement and should not be construed as proof of any commitment by the Club, financial or otherwise, to any other party. The Member's submission of this Summary of Coverage as proof of insurance under any applicable law, whether financial liability or otherwise, should not be taken as an indication that the Club agrees to act as guarantor or to be sued directly in any jurisdiction. The club does not allow this. Completed Renewal Documents All renewal documents, including Certificates of Entry and Promissory Notes, will be transmitted in electronic format only. deposited returns Members are reminded of the Club's requirements regarding the right of return , and in particular that ships must be placed in a safe harbor approved by the Directors. In addition, Managers must be notified in advance of any ship's preparation to leave the holding period, as the ship may need to be surveyed in accordance with the Club's survey requirements. The club published a loss prevention briefing on the berthing in February 2016. Premiums and Editions The Club continues to be in a strong financial position with an “A” rating from Standard & Poor's as recommended in Circular Ref: 2022/030 of 25 November 2022 and the accompanying Financial Review. Approval Calls evaluated in November 2022 will remain unchanged and no unbudgeted bonuses are expected in relation to any open Policy Years. Unpaid Premiums Final confirmation of renewal will be subject to the absence of sums due or owed to the Club. Renewal certificates will not be made available to Members until outstanding amounts have been paid or properly secured. The club's underwriting department will be happy to take care of any questions regarding any of the above topics. PAUL JENNINGS HEAD MANAGER / GENERAL MANAGER Northern England P&I Association Limited / Northern England P&I DAC Circular Ref: 2023/007 Gotopnews.com