Skuld: War risks P&I excess cover and bio-chem cover for the 2012 Policy year
Friday, 20 January 2012 | 11:00
Although war risks are excluded from standard P&I cover (Rule 30.4.1), Assuranceforeningen Skuld (Gjensidig) ("the Association"), in conjunction with other P&I Clubs in the International Group, continues to provide War Risks P&I Excess Cover on the same basis as in the 2011 policy year. The limit of cover remains at USD 500 million. The cover is subject to an excess of the proper value of the entered vessel, or whatever sums are recoverable from other war risks covers, whichever is the greater. The minimum excess is the proper value of the entered vessel or USD 100 million, whichever is the lesser. The cover is subject to a minimum deductible of USD 50,000 any one event each vessel.
The cover is for P&I risks as set out in Part II of Skuld’s Rules and which are excluded from standard cover by virtue of the war risks exclusion in Rule 30.4.1. The cover is subject to the Statutes and Rules (save for the exclusion in Rule 30.4.1) and to any terms and conditions separately agreed with members.
Members should note the following:
Since this is an excess cover only, Members must maintain their primary war risks P&I cover with a minimum limit of the value of the entered vessel or USD 100 million. Members should ensure that this cover is maintained at a level which accurately reflects the proper value of their vessels in the prevailing market.
If Members choose to insure for amounts in excess of the value of the vessel, the cover provided by the Association will apply in excess of the total amounts recoverable under all other P&I war risks policies.
The limit of USD 500 million is subject to aggregation (see Appendix 1).
The cover is subject to cancellation, automatic termination and nuclear and bio-chem exclusions, full details of which appear in the Appendix attached.
Liabilities which Members may incur under TOPIA 2006 are excluded. Bio-Chem Pool The War Risks P&I Excess Cover is subject to the bio-chem exclusion (as set out in the Appendix attached). In order to provide a degree of cover to Members, the P&I Clubs in the International Group agreed in 2004 to cover bio-chem risks relating to crew claims and for legal costs relating to other P&I liabilities. Cover is provided through a special pooling
arrangement and is subject to a limit of USD 30 million in the aggregate. Details of the cover are set out below in Appendix 2 as attached.
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