8 February 2017 TO ALL MEMBERS AND ASSUREDS Dear Sirs 2017/2018 - Policy Year arrangements This Circular provides a summary of the following arrangements for the 2017/18 Policy Year. Rules As previously notified, Class 5 (P&I), Class 7 (War Risks) and Class 8 (FD&D) Member Meetings were held on 25 January 2017. The amendments to the Rules of the Classes approved at those Meetings can be accessed here and will take effect from noon G.M.T. on 20 February 2017. Readers are reminded that the full P&I, War Risks and FD&D Rules can be accessed here. International Group - Pooling and Reinsurance Arrangements Information on the IG’s pooling and reinsurance arrangements for 2017/18 can be accessed here. Class 5 (P&I) Cover, Limits on Cover and Overspill Reinsurance* For oil pollution claims, the limit of the Association’s aggregate liability will continue to be US$1 billion 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 International Group’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 Class 5 (P&I) Rules including Rules 11 and 33, and as may appear in individual Certificates of Entry. Excess War Risks P&I Cover Excess war risks P&I cover will be provided to Class 5 Members in 2017/18, pursuant to Rule 15.3. The limit of the cover remains at US$500 million, any one accident. Members are reminded that the cover is subject to an 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 2017) for full details of the cover, which can be accessed here. * For Charterer Assureds and Assureds under the Owners’ Fixed Premium P&I Cover Policy, please see below. - 2 Bio-Chem Claims The excess war risks P&I cover for Class 5 Members referred to above is subject to the exclusion of bio-chem risks. However, some limited cover in respect of such risks will, once again, be provided by the Association and pooled with the other IG Clubs in excess of the 2017/18 Club retention of US$10 million. 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, compensation or expenses in consequence of the personal injury to or illness or death of any seaman; and for legal costs and expenses incurred for the purpose of avoiding or minimising bio-chem claims. To avoid excessive aggregation of risk, the cover is subject to cancellation on 24 hours’ notice. Full details can be accessed here. Terrorism Insurance for US ships Any Members entering ships in the Association that qualify for the Terrorism Risk Insurance Act of 2002, as amended by the Terrorism Risk Insurance Programme Reauthorisation Act 2007, and as further amended by the Terrorism Risk Insurance Program Reauthorisation Act of 2015 are reminded that amongst oth