Ten per cent return to members as UK War Risks Club
sets new rates
The UK War Risks Club will return 10 per cent of the
net Advance Contribution paid by members for the 2008 policy year to all who
renew for 2009.
The directors' decision reflects the projected
operating result for the 2008 policy year which ends on February 20th. The
return will be credited against the contribution required for the next policy
year.
Andrew Ward, Director of Underwriting at UK War Risks,
said: "I am pleased to announce that the Club is able to make a return of call
despite the challenging investment markets in 2008. The strength of the our
reserves and a prudent investment policy has meant that we are once again able
to demonstrate the benefits of mutuality to the membership."
Advance Contribution rates required by the UK War
Risks Club from 20 February 2009 will be as follows.
The worldwide trading rate for passenger and cruise
ships will be 0.0363 per cent. Other ships will be subject to a worldwide rate
of 0.0102 per cent and a restricted trading rate of 0.0051 per cent.
For entered ships qualifying for Government
reinsurance---if registered in the UK, the Isle of Man, the Channel Islands or
a British colony---rates will be slightly lower. The worldwide trading rate
will be 0.0327 per cent for passenger and cruise ships. For other vessels, the
worldwide rate will be 0.0094 per cent and the restricted trading rate 0.0047
per cent.
However, Advance Contribution rates will be discounted
by 50 per cent in respect of insurance under Rule 3 (freight, disbursements
and/or increased value, premiums and/or other interests). They will also be
discounted by 50 per cent for any non-cruise or passenger ship which trades
exclusively for the whole policy year within one of the following "restricted
trading" areas: USA and Canada, excluding Panama Canal transits; Australasia;
and Europe, not south of Gibraltar and excluding the Mediterranean and Black
Seas.
These contributions will be payable in two instalments
on 20 February and 20 August. The directors will keep the level of contribution
under review during the Policy Year.
For the first time, brokerage commissions of 7.5 per
cent will be payable on the Advance Contribution rates, less any allowances for
Rule 3 or restricted trading discounts. For ships entered directly, the same
level of commission will be payable to the member. The rates listed above
include brokerage/commission.
There will be a 30 per cent brokerage/commission,
where Additional Premiums are placed on the Club's main reinsurance contract,
payable to broker or member.
The maximum amount for which any one ship or the
interests therein may be insured by the Club will be £390 million (Euros
510 million; US$630 million). Protection and Indemnity cover for claims,
including oil pollution, will be £325 million (Euros 425 million; US$500
million) for each accident or occurrence, in addition to hull values.
Designated Additional Premium Areas are currently
Djibouti, Ivory Coast, Nigeria, Somalia, Sri Lanka, Georgia, Iraq, Israel,
Lebanon, Saudi Arabia and Yemen; parts of Indonesia, Malaysia, Thailand and the
Philippines, including the Sulu Archipelago; and Gulf of Aden and Somalia
transits. Owners of ships entering Additional Premium Areas must give the
Association written notice or cover is not valid.
The UK War Risks Club, managed by Thomas Miller, has
over 850 entered ships, valued at over $30 billion. It offers cover for hull
and machinery risks, detention and diversion, war risks P&I liabilities,
sue and labour expenses and discretionary cover.
In October, the Club decided to accept applications
from February 20th for war risks insurance from shipowners with no connection
with the United Kingdom. Until then, the Club had concentrated on UK owned and
flagged vessels. The aim is to secure a broader membership base, spreading the
risks more widely and achieving greater operating economies of scale.
-ends-
|
