Alterations to the Rules of the Association To the Members As described in our circular No.20-016 dated 2 December 2020, the following alterations to the Rules of the Association (the "Rules") will become effective from 12 noon GMT on 20 February 2021 for the 2021 policy year.  There will also be an alteration to the Special Clause. The amendments are explained below, and extracts of the relevant provisions are attached hereto.   Alterations to the Rules   Rule 28 (Quarantine Expenses) To make it clear that the trigger for coverage is an outbreak of infectious disease “on board”.   Rule 31.1(1)~(5) (Fines) Concerns were expressed in the International Group of P&I Clubs that providing insurance coverage for smuggling fines could be seen by some governmental authorities as undermining the intended effect of the penalties, and that continuing to provide insurance coverage for such items could have both financial and reputational consequences for the Group, and was inconsistent with the Clubs’ sustainability goals.   For this reason, our Rules are to be amended along the lines of amendments to the Pooling Agreement of the International Group of P&I Clubs, which will exclude from the 2021 Policy Year onwards cover as of right for loss / damage due to fines and penalties arising out of smuggling or any attempt at such. Accordingly, the existing items (3) to (5) are renumbered.   Rule 34.2 (Deductibles) We have a specific deductible amount, and not a percentage, for claims under most of our Rules (except for FD&D).   Where, however, the deductible applicable to a claim is a percentage of the covered amount and a limitation fund is constituted further to a loss, it may be difficult to finalise the amount of the deductible. For example, a deposit may be payable with interest accruing on top of the payment amount from the date of the loss, meaning that the claim amount from which to calculate the percentage deductible is always c