The terms for War Risk Insurance for 2005 are outlined in this circular. The Association will continue the process of streamlining the cover to ensure a comprehensive insurance aimed at reducing costs for Members.

Features for 2005:

• Sum Insured – to correspond to the Hull and Machinery insurance value and/or any ancilliary interests covered.
  
• Conditions – most major acceptable conditions for War Risks cover.
  
• Blocking & Trapping – Total Loss compensation paid after six months with Additional Expenses.
  
• Liability Cover (P&I) – independent limit for P&I risks up to sum insured however never to exceed USD 100,000,000.
  
• Crew War Risk Liabilities – up to USD 240,000 per capita.
  
• Loss of Hire – maximum USD 40,000 per day in excess of seven days any one accident limited to 180 days (7/180/180) if agreed in advance and subject to additional AP for breaches.
  
• Trading Warranties – see currently excluded areas on page 3.
  
• All vessels – subject to Notice of Cancellation, Automatic Termination of Cover, War, Nuclear etc. and Cyber Attack Exclusion Clause 2004-01-01 – W.1.3.
  
• Swedish Flagged Vessels – subject to Swedish Club Outbreak of War Clause (W.7.2).

Premium
The agreed premium to be paid on January 1st 2005 or as agreed.

Cover
P&I Liabilities

War etc., P&I etc., Liabilities (Excluding Crew). Crew War Risks Liabilities up to USD 240,000 per capita.

War Loss of Hire

Within Trading Limits:
Loss of Hire is included without additional cost on the basis of maximum USD 40,000 per day in excess of seven days each accident always limited to 180 days any accident and per year. Subject to trading warranties as per War Hull Cover. Higher daily amounts can be arranged.
Excluded Areas:
Loss of Hire cover in excluded areas can be arranged subject to advance notice given and premium to be agreed. Such cover is also subject to Additional Premiums and limits as applicable for excluded areas at time of breach.

Blocking & Trapping inclusion

Total Loss compensation after six months.
Additional Expenses up to USD 25,000 during blocking & trapping in excess of seven days.

Limits

Unless otherwise agreed the Association’s liability is limited to the sum insured for total loss of or damage to the vessel including additional expenses during blocking & trapping and loss of hire. Separate and independent limit of liability for P&I risks including crew liabilities up to sum insured however never to exceed a limit of USD 100,000,000.

Notice of Cancellation, Automatic Termination of Cover, War, Nuclear etc. and Cyber Attack Exclusion Clause (W.1.3), included in all covers.


Swedish Flagged Vessels
Swedish flagged vessels will be subject to The Swedish Club Outbreak of War Clause – Hulls etc., (W.7.2), as enclosed. Non Swedish flagged vessels will be subject to the Notice of Cancellation, Automatic Termination of Cover, War, Nuclear etc. and Cyber Attack Exclusion Clause, (W.1.3), as enclosed, which is also deemed to be included in all covers relating to war risks.

Trading – Trading Exclusions
The insurance is valid world-wide, however with a General Cancellation Clause of seven days as regards trading warranties, with the following areas currently excluded:

(a) Persian or Arabian Gulf and adjacent waters including the Gulf of Oman North of 24°N
(b) Angola (including Cabinda)
(c) Israel
(d) Lebanon
(e) Libya (including Gulf of Sidre/Sirte)
(f) Eritrea
(g) Somalia
(h) Congo, Democratic Republic of (formerly Zaire)
(i) Liberia
(j) Sri Lanka
(k) Sierra Leone
(l) Gulf of Aqaba and the Red Sea
(m) Republic of Yemen
(n) Pakistan
(o) Oman
(p) Syria
(q) Algeria
(r) Egypt
(s) Indonesia excluding transiting vessels
(t) Ivory Coast
(u) Nigeria and the Bakassi Peninsular

Trading to excluded areas should be reported to the Association. If trading to an excluded area is permitted, an additional premium may be required. The additional premium is decided in each case.
Yours sincerely, The Swedish Club Frans Malmros