Policy Year 2007 - Limit of Cover for Passenger and Seaman Risks
CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS
Members may be aware that there has been much debate in recent years concerning the level of cover given for passenger risks, an issue highlighted by the likely entry into force of the 2002 Protocol to the Athens Convention which will impose substantially greater liability for passenger risks.
A solution has now been developed by the International Group. This solution aims to continue to provide very high limits of cover for passenger and seaman risks, whilst reflecting the exposure which passenger ships bring to the Group. The solution recognises that there are large numbers of both passengers and seamen on board passenger ships, both cruise ships and ferries and that passenger ship owners will be obliged to provide direct action certification for their liabilities under the Athens Convention Protocol.
The intention is that for the 2007 policy year, cover for passenger and seamen risks on all Entered Ships will be limited to US$3bn, with a sub-limit of US$2bn for passenger claims only, each accident or occurrence. A passenger will be any person on board an Entered Ship by virtue of a contract for passage. A seaman will be any person on board other than as a passenger.
This proposal remains subject to final agreement by the International Group and the purpose of this notice to Members is to advise Members that in the likely event that such agreement is concluded, the 2007 policy year terms of entry for all Members, other than those with entries on a more limited basis, will incorporate the limit of cover set out above.
Final details will be circulated in due course but meantime if there are any questions these should be directed to the Underwriting Department.
PA JENNINGS
DEPUTY MANAGING DIRECTOR – North Insurance Management Limited
As Managers on behalf of the North of England P&I Association Limited