11 February 2016 TO ALL WAR RISKS MEMBERS Dear Sirs WAR RISKS RENEWALS – POLICY YEAR 2016/17 1. Advance Contribution Rates Members are advised that Advance Contribution rates have been set with effect from 20 February 2016 and that they will be notified to Members individually. A 50% reduction will be granted for ships trading exclusively in one of the following areas: (i) Europe (but including the Mediterranean and Black Sea); (ii) USA and Canada (excluding Panama Canal transits); (iii) Australasia. Extensions to trading outside of any of these areas will be covered on the basis of a minimum period of three months. 2. Insured Values and Sums Insured The maximum amount for which any one ship, or the interests therein, may be insured by the Association, being the total of the value insured by Hull and Machinery (Rule 2(B)) and Freight, Disbursements, Premiums, Increased Values and/or Other Interests (Rule 3) will be GBP390,000,000 or USD630,000,000 or the equivalent in the currency of the Insured Value exchanged at the fixed rate with effect from the commencement of the Policy Year. Members are reminded that they should check to ensure that any alterations to the insured values have been notified to the Association and that the insured values and sums insured are exactly the same, both in terms of value and allocation between Hull and Machinery and Freight, Disbursements, Premiums, Increased Value and /or other interests, as those for which the ship is insured under marine policies. It should be borne in mind that under the terms of the Reinsurance Agreement between this Association and Her Majesty’s Government, the Insured Value for Queen’s Enemy Risks purposes (Rule 2(A)) will usually be the total loss value under Members’ marine policies. 3. Protection and Indemnity Cover (Rule 2 Part D) The limit of liability for claims under Rule 2 Part D will be GBP325,000,000 each ship any one accident or series of accidents arising out of one event, or USD500,000,000 if that is the currency of the ship’s insured value and any sum insured. - 2 4. Additional Premium Areas In accordance with the Association’s Rule 19.3 (Class 7 War Risks), the additional premium areas with effect from 00:01 hours GMT on 20 February 2016 are shown in the attached schedule. 5. Best Management Practices to Deter Piracy The London P&I Club strongly recommends that all Members implement and adopt the Best Management Practices to Deter Piracy in the Gulf of Aden & relevant parts of Indian Ocean, including the registering requirements specified. These practices have been developed by industry and naval forces and should be particularly useful in the preparation of ships’ anti-piracy contingency plans. The August 2011 version of the Best Management Practices document is available on The London Club web site: http://www.londonpandi.com/_common/updateable/downloads/bmp_4.pdf 6. Sanctions The Rules of the 2016/17 Policy Year incorporate the Sanctions Limitation and Exclusion provisions broadly as identified within the Association’s Circular of 2 March 2011. The full text is attached. An Insured Owner’s insurance may be prejudiced in the event that the Entered Ship is employed in a manner that has or will expose the Association to the risk of sanctions which the Committee in its sole discretion determines may materially affect the Association in any way whatsoever. In addition, liabilities, costs and expenses that are not recovered under the pooling and/or reinsurance arrangeme