Members are referred to the Club’s Member Alert of 18 January 2016 regarding EU and US sanctions against Iran, and their potential impact on insurance cover. In particular, the fact that US maintains its Primary Sanctions may result in that US reinsurers on the Club’s reinsurance programme for Marine risks may be unable to meet their obligations and pay a claim with an Iranian nexus. This could apply to any vessel having a casualty or claim in Iran. Such shortfall from reinsurance is generally an excluded risk according to applicable sanctions exclusion clauses in the Marine policies, such as Club clause W 10. This clause is attached to this Circular for ease of reference.

The Club has taken steps to minimise the risk of such shortfall which entails that members on Marine (H&M, IV, LoH, War and any other ancillary Marine insurance) are required to notify the Club before commencement of trading to Iran. This notification requirement does not apply to any other class of insurance.

 Club clause W.10