Entry into force of the Regulation (EC) No 392/2009 of the European Parliament and of the Council of 23 April 2009 on the Liability of Carriers of Passengers by Sea in the Event of Accidents (the "PLR")

CIRCULAR REF: 2012/041

CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS                                              

This Circular should be read in conjunction with North’s previous circulars, dated 24 September 2012 (Ref 2012/032) and 7 December 2012 (Ref 2012/039).

Members will be aware that International Group clubs have agreed to issue the required non war risk PLR “Blue Cards” to enable Members to apply to an EU/EEA Member State for their PLR certificates.

The situation with regards to war risk blue cards is different.  Shipowners are required to obtain a war risk blue card and this will be signed by an insurer, or other provider of financial security, who will in effect guarantee the Member’s liability to passengers for injury and death, arising out of acts of war and terrorism.

The International Group clubs have agreed that they will not act as primary war risk underwriters and therefore will not be able to provide the required war risks blue cards. Members will therefore need to seek alternative arrangements.

To assist Members in obtaining war risks blue cards, North is currently aware of two leading market solutions offering to act as a blue card guarantor.  These are:

Shoreline Passenger Solutions (SPS)

Shoreline Passenger Solutions (“SPS”) is an insurance and reinsurance facility which was formed by Shoreline Insurance Managers Limited (“SIM”) to specifically insure or reinsure the war risk exposure of the PLR.  SPS provides the ‘War Blue Card’ as evidence of the war insurance cover that shipowners require in order to comply with the PLR. 

For more information, please visit: http://www.shoreline.bm/

Safeguard Guarantee Company Ltd

Safeguard Guarantee Company Limited was established in 2008 to offer financial security under the International Convention of Civil Liability for Bunker oil pollution damage, 2001, but in 2012 expanded its scope of business to include provision of financial security required for war and terrorism risks.

For more information, please visit: http://www.safeguardguarantee.bm/

Members are encouraged to contact Shoreline or Safeguard directly or through their brokers (where appropriate).  Each website contains an online application form and walk through guide to the procedure for obtaining the relevant blue cards.

Whilst North is unable to make applications on behalf of Members, we will endeavour to keep Members advised of any other war risk blue card providers that might enter the market.

If you would like more information or assistance, please contact either the undersigned or Robin Hill.

SIMON WILLIAMS

Associate Director – North Insurance Management Ltd

As Managers on behalf of the North of England P&I Association Limited