1) CLASS 1 (P & I)
a) Advance Call Rates/Timecharter and Owners’ Fixed Premium Adjustments - no standard surcharge shall be applied to net advance call rates for mutual entries for policy year 2017. As usual, adjustments as necessary may be made to individual advance call rates to reflect particular claims experience and risk exposure.
The board also decided that the forecast additional call to be set at inception shall be unchanged from recent policy years- 35% of the net advance call, equivalent to about 26% of the estimated total call (ETC). The release for 2017 is to be set at 20% of the net advance call (equivalent to 14.8% of the ETC) in addition to the forecast additional call set for the year.
b) Class 1 Deductibles - The Rules deductible will remain at $11,000.
Where Members’ individual deductibles are below the Rules deductible, an increase of 10% or $1,000, whichever is higher, shall be applied. Further adjustments may be made to reflect individual risks or exposure.
c) International Group Pooling Arrangements - Details of the IG Pooling arrangements, Group excess of loss reinsurance programme and related costs and terms will be advised in a separate Notice to Members once they have been finalised.
Limits of cover for oil pollution and non-oil pollution claims are likely to remain unchanged. Overspill protection is also likely to be provided on the same basis as for 2016.
d) Charterers’ Entries - As usual, charterers’ entries will be covered for P&I risks either through the Club’s own Charterers Comprehensive Cover, which can include Damage to Hull and other risks, or through the Group’s Pooling and excess of loss reinsurance arrangements.
Although the scope and terms of both covers have yet to be finalised they are likely to be similar to those which apply for 2016.
e) War Risk P&I - For several years the Club has automatically provided excess war risk P&I cover for both owners’ and charterers’ entries on terms that are fully re-insured with the commercial market for a limit of cover which is currently $500 mill in excess of a vessel’s proper value.
It is expected that this cover will be renewed but on terms that have yet to be negotiated.
2. CLASS 2 (F D & D)
No general increase will be applied for Policy Year 2017 for Class 2. Mutual advance call rates and timecharter/owners’ fixed premium rates will not therefore increase except where adjustments are required to reflect individual members’ particular records and exposure.
The forecast additional call for mutual entries will remain at 35% of the advance call, equivalent to about 26% of the ETC. The release percentage will be 20% of the advance call (equivalent to 14.8% of the ETC) in addition to the forecast additional call.
The deductible for Class 2 will, unless otherwise agreed, remain unchanged.
3. PREMIUM PAYMENT (CLASS 1 and CLASS 2)
In accordance with the Club’s usual terms for both Class 1 and Class 2 mutual entries, the advance call shall be payable (together with the cost of the Group’s excess of loss premium for Class 1) in four equal instalments.
The additional call for both classes shall be due on or before 20th August, 2018.