Blue Cards - Issuance to Registered Owners Only

CIRCULATED TO ALL TANKER MEMBERS, BROKERS AND DIRECTORS

Members will be aware that the Clubs in the International Group are the principal providers of the Blue Cards which provide the basis for States to issue the State certificates in accordance with the International Convention on Civil Liability for Oil Pollution Damage, 1992 (CLC).

The Convention requires the owner of a ship registered in a CLC Contracting State and carrying more than 2,000 tons of oil in bulk as cargo to maintain insurance cover in accordance with the requirements of the Convention, which is evidenced by the Blue Card issued by the Club.  CLC tankers must carry a State certificate on board attesting the insurance coverage.

It has been reported that some CLC Contracting States* are requiring Blue Cards naming both the owner and the bareboat charterer.

It is understood that some Clubs may have complied with these requests to name the bareboat charterer in respect of the 2006 Policy Year.

It has however now been agreed that the practice of naming bareboat charterers in Blue Cards should be discontinued with immediate effect since this does not reflect the clear provisions of the Convention, which make the registered owner solely liable and explicitly exclude the charterer from liability.  For the purposes of the Convention the Clubs will now only provide a Blue Card to the “person or persons registered as the owner of the ship”.

Those authorities that have previously requested the naming of bareboat charterers have been informed that this practice will be discontinued with effect from 20th February 2007.

A similar Circular is being sent by the other Clubs of the International Group, to their respective Members.

T KATHIRAVEL

ASSOCIATE DIRECTOR – North Insurance Management LimitedAs Managers on behalf of the North of England P&I Association Limited

*CLC contracting States reported so far include: Liberia, Venezuela, Singapore, Saudi Arabia, Marshall Islands, Luxembourg, Italy and France.