Tanker Owners’ Liability on CLC Convention (International Convention on Civil Liability for Oil Pollution Damage) and Act of Terrorism 5 February 2002 No. 01-014 It was reported in the Special Circular No.01-008 dated 14 November, 2001 that the Board of Directors resolved on 1 November, 2001 that the terrorism shall be additionally listed in the risks generally excluded from 20 February, 2002 onward. In this respect, the inquiries were raised if the Association is going to indemnify or compensate the liability, loss or damage to the oil pollution incident as regulated by the International Convention on Civil Liability for Oil Pollution Damage 1969 or 1992 as amended or its national legislation (hereinafter collectively called as CLC). As reported below, the Association will maintain the almost same capacity for indemnification and compensation as well as today in combination of Special Clauses of the Association and tanker owners' War Risk P&I Insurance as the case may be. 1. The points of the inquiries raised: 1) Whether or not the direct claim coming from the third parties in respect of their loss or damage of CLC oil pollution incident caused by terrorism will be compensated? 2) Whether or not a Member could be indemnified for its expenses such as cleaning for CLC oil pollution incident caused by terrorism? 2. In accordance with Special Clause as enclosed herewith, it is illustrated as follows in response to the inquiries in the above 1. 1) Whether or not the direct claim coming from the third parties in respect of their loss or damage of CLC oil pollution incident caused by terrorism will be compensated? It is stipulated in Rule 1. of the Special Clause that the Association as the insurer named in the certificate of CLC shall compensate the third party claimants as well as before without invoking any defenses other than the limit of liability or any other defenses available in CLC even from 20 February, 2002 onward. 2) Whether or not a Member could be indemn