P&I War Risks Cover and US Terrorism Risk Insurance Act 2002 17 February 2003 No.02-018 We refer to our previous circular No.02-016 of 28 January 2003 on the US Terrorism Risk Insurance Act of 2002 ("TRIA").  At the meeting of the Association's Board on 17 February 2003 the Directors considered the P&I War Risks Cover could be made available to Members in accordance with the P&I War Risks Clause of the Association's Rules and the extent to which this can include cover arising from acts of terrorism as defined in the TRIA, aiming at the possible recovery to be prepared thereof. Following the receipt of US legal advice and reinsurance quotations, the Directors have resolved that special cover can be provided to Members for the 2003 policy year, including cover arising from acts of terrorism as defined in the TRIA under the P&I War Risks Clause. The terms of resolution of the Directors are attached hereto. The followings are main features of this cover for the 2003 policy year. 1. Subject to 2. below, the limit of this cover will be increased from US$200 million to US$400 million each ship, any one accident or occurrence. 2. As before, the cover will only respond to claims in excess of the US dollar equivalent of the proper value of the entered ship as referred to in Rule 35.2(2) or the amount recoverable from the ship's war risks underwriters, whichever is the greater. For the purpose of this cover, where the proper value exceeds US$100 million, the proper value will be deemed to be US$100 million. 3. A premium for cover arising from acts of terrorism as defined in the TRIA will be US cents 0.25 per G/T. P&I WAR RISKS COVER SPECIAL COVER UNDER P&I WAR RISKS CLAUSE TERMS OF DIRECTORS' RESOLUTION OF 17 FEBRUARY 2003 WHEREAS, in accordance with Rule 35-1-(2) of the Association's Rules coverage for certain war and similar risks, including acts of terrorism, is excluded under the general mutual indemnity undertaking, special cover is neverthele