Marine Circulars

Marine Circulars

Göteborg: 2 July 2021
432/2021

K&R Insurance 2021 - Notice of Cancellation

The Association hereby gives notice of cancellation as per relevant Notice of Cancellation Clause for Marine Kidnap & Ransom Insurance policy year 2021.

Notice shall run until expiry 10 July 2021 00.01 GMT

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The cover is from that time reinstated with enclosed amendments to the trading areas and warranties.

The following area is added:

AFRICA:
BREACH AREA C- Cabo Delgado
The waters within 50 nautical miles of Mozambique and Tanzania enclosed by the following boundaries:
a) To the north, from Mnazi Bay at 10°19.6'S, 40°18.9'E to high seas point at 9°50.7'S, 41°7.6'E.
b) To the south, from Baía do Lúrio at 13°30’S, 40°31.6’E to high seas point 13°30’S, 41°28.8’E.

The following area is amended:

MIDDLE EAST:
BREACH AREA A - Indian Ocean, Gulf of Aden and Southern Red Sea

The waters enclosed by the following boundaries:

a) On the north-west, by the Red Sea, south of Latitude 15° N
b) On the northeast, from the Yemen border at 16°38.5’N, 53°6.5’E to high seas point 14°55’N, 53°50’E
c) On the east, by a line from high seas point 14°55’N, 53°50’E to high seas point 10°48’N, 60°15’E, thence to high seas point 6°45’S, 48°45’E
d) And on the southwest, by the Somalia border at 1°40’S, 41°34’E, to high seas point 6°45’S, 48°45’E

excepting coastal waters of adjoining territories up to 12 nautical miles offshore unless otherwise provided.

Unamended Areas:

BREACH AREA B – the Gulf of Guinea remains unchanged.

Express warranties of each insurance bound are changed as follows:

WARRANTIES ALL BREACH AREAS (A, B, C):

Cargo
Warranted no arms, ammunition or military equipment carried on board as cargo.

Scrappage
No coverage to be offered to vessels on their final transit for scrappage unless agreed by Slip Leader.

ISPS Level 2 is maintained whilst in anchorages and alongside especially in and around Ports within the HRA and other known risk areas.

WARRANTIES BREACH AREA A:
International Recommended Transit Corridor
Warranted vessel to pass through Internationally Recommended Transit Corridor (IRTC)
as part of Gulf of Aden Group Transit (GOA GT), with the following exceptions:

  • Armed Transits Fulfilment Warranty A complied with
  • Vessels with a transit speed of 20 knots and a freeboard of over 3 meters throughout the transit.

Registration
Warranted vessel/owner registered with Maritime Security Centre Horn of Africa (MSC HOA) website (https://www.mschoa.org/), and/or UKMTO when transiting Breach Area A.

Best Management Practices 4
Warranted that charterers/owners/operators follow BMP4 as appropriate to the size, speed and route of the vessel when entering Breach Area A.
Recommended vessel security should be maintained along BMP4 guidelines where possible.

WARRANTIES BREACH AREA A – DEPENDANT UPON THE FOLLOWING
“ARMED TRANSIT FULFILMENT WARRANTY A”:
No fewer than 3 armed guards, armed with Single Shot or Semi Automatic High Velocity weapons to be on board whenever the vessels are in the Listed Area.
Any discount for Armed Guards shall be subject to the above.
All other clauses and conditions in the K&R cover provided by the Association remain unaltered.

Anti-Piracy warranties where “ARMED TRANSIT FULFILMENT WARRANTY A” is complied with:
Speed: Vessel must have at least 11 knots capability. Unless in a situation where owing to unexpected adverse weather, sea conditions, or, engine trouble, the vessel(s) has capability to accelerate to this speed.
Speeds below 11 knots are permissible whilst travelling as part of an organised convoy with naval protection.

Anti-Piracy warranties where “ARMED TRANSIT FULFILMENT WARRANTY A” is NOT complied with:
When a vessel is in Breach Area A, but is unable to fulfil all the requirements of “ARMED TRANSIT FULFILMENT WARRANTY A”, the following Anti-Piracy Warranties must be complied with.
Razor wire: installed around all the perimeter of the vessel.
Freeboard: Minimum Freeboard of 3.5 meters. Lower Freeboards to be agreed by Underwriters on a case-by-case basis with no precedent for cover.
Speed: Vessel must have at least 11 knots capability. Unless in a situation where owing to unexpected adverse weather, sea conditions, or, engine trouble, the vessel(s) has capability to accelerate to this speed.
Speeds below 11 knots are permissible whilst travelling as part of an organized convoy with naval protection.
Citadel: must be configured as follows: independent compartment with strongly hardened steel doors from all sides. The Citadel must have an independent means of communication, via Inmarsat, Iridium or other satellite phone, and powered from an independent source on board with the ability to provide communications for at least three days. It must have a separate battery operated lighting and dry food and water sanitation facilities (as per BMP4 guidelines).

WARRANTIES BREACH AREA B:
Best Management Practices West Africa
Warranted that charterers/owners/operators follow BMP West Africa as appropriate to the size, speed and route of the vessel when entering Breach Area.
Recommended vessel security should be maintained along BMP West Africa guidelines where possible.


WARRANTIES BREACH AREA B – DEPENDANT UPON THE FOLLOWING
“ARMED TRANSIT FULFILMENT WARRANTY B”:
No fewer than 3 armed guards, armed with Single Shot or Semi Automatic High Velocity weapons to be on board at all times whenever the vessels are in the Gulf of Guinea
Listed Area
OR
No fewer than 3 Nigerian, Togolese or Beninese Navy to be on board at all times whenever the vessels are in the Gulf of Guinea Listed Area
OR
A Naval Escort that is dedicated solely to the protection of the assured vessel and transits within 750m of said vessel at all times whenever the vessels are in the Gulf of Guinea Listed Area
Any discount for Armed Guards shall be subject to the above.

Anti-Piracy warranties where “ARMED TRANSIT FULFILMENT
WARRANTY B” is complied with:
Speed: Vessel must have at least 11 knots capability. Unless in a situation where owing to unexpected adverse weather, sea conditions, or, engine trouble, the vessel(s) has capability to accelerate to this speed.
Speeds below 11 knots are permissible whilst travelling as part of an organised convoy with naval protection.

Anti-Piracy warranties where “ARMED TRANSIT FULFILMENT WARRANTY B” is NOT complied with:
When a vessel is in Breach Area B, but is unable to fulfil all the requirements of
“ARMED TRANSIT FULFILMENT WARRANTY B”, the following Anti-Piracy Warranties must be complied with.
Razor wire: installed around all the perimeter of the vessel.
Freeboard: Minimum Freeboard of 4 meters. Lower Freeboards to be agreed Underwriters on a case-by-case basis with no precedent for cover.
Speed: Vessel must have at least 11 knots capability. Unless in a situation where owing to unexpected adverse weather, sea conditions, or, engine trouble, the vessel(s) has capability to accelerate to this speed.
Speeds below 11 knots are permissible whilst travelling as part of an organised convoy with naval protection.
Citadel: must be configured as follows: independent compartment with strongly hardened steel doors from all sides. The Citadel must have an independent means of communication, via Inmarsat, Iridium or other satellite phone, and powered from an independent source on board with the ability to provide communications for at least three days. It must have a separate battery operated lighting and dry food and water sanitation facilities (as per BMP4 guidelines).

WARRANTIES BREACH AREA C:
Warranted any calls to ports in this area to have 3 or more Armed Maritime Security Consultants on board at all times whilst in port.


Any discount for Armed Guards shall be subject to the above.

All other terms and conditions remain unchanged.

 

For any questions or more information, please contact
Tord Nilsson, Director Underwriting Reinsurance and Risk Control
E-mail: tord.nilsson@swedishclub.com

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