The terms for War Risk Insurance for 2007 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 2007:

• Sum Insured – to correspond to the Hull and Machinery insurance value and/or any ancillary interests covered.
  
• Conditions – most major acceptable conditions for War Risks cover.
  
• Blocking & Trapping – Total Loss compensation paid after six months with Additional Expenses unless a total loss compensation has been made and/or never exceeding 180 days.
  
• Liability Cover (P&I) – independent limit for P&I risks up to insured values on Hull War and Hull Interest, if any, however, never to exceed USD 155,000,000.
  
• Loss of Hire – maximum USD 50,000 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 List of Areas of Perceived Enhanced Risk 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 2007 or as agreed.

Cover
P&I Liabilities
War etc., P&I etc., Liabilities (including Crew).

War Loss of Hire
Within Trading Limits:
Loss of Hire is included without additional cost on the basis of maximum USD 50,000 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.

Listed Areas:
Loss of Hire cover in Listed (“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, however not recoverable after a total loss compensation been paid or not exceeding 180 days.

Limits
Unless otherwise agreed the Association’s liability is limited to the insured values for total loss of or damage to the vessel including additional expenses during blocking & trapping and loss of hire. Loss of Hire may be covered at a separate limit if agreed in advance. Separate and independent limit of liability for P&I risks including crew liabilities up to insured values on Hull War and War Interest, if any, however never to exceed a limit of USD 155,000,000.

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.

List of Areas of Perceived Enhanced Risk “Listed Areas” wef August 7th 2006
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. Trading to Listed Areas should be reported to the Association. If trading to a listed area is permitted, an additional premium may be required. The additional premium is decided in each case.

Definitions:

• Named Countries shall include their coastal waters up to 12 nautical miles offshore, unless specifically stated below.
  
• Named Ports shall include all facilities/terminals within areas controlled by the relevant port authority/ies (or as may be more precisely defined by Insurers) including offshore terminals/facilities, and all waters within 12 nautical miles of such but not exceeding 12 nautical miles offshore unless specifically stated.

Africa:
Djibouti excluding transit
Ivory Coast
Nigeria including all Nigerian offshore installations
Somalia including waters out to 200 nautical miles of the eastern (Indian Ocean) coast. Vessels or crafts are not to approach within 100 nautical miles of the Socotra archipelago. Vessels or crafts are to stay 40 nautical miles to the north of Somalia when transiting the Gulf of Aden.

Asia:
Pakistan
Sri Lanka
Thailand, but only the area of the southern Gulf coast between the ports of Songkhla and Narathiwat inclusive

Indonesia/Malaysia:
The island of Ambon (Seram)
The port of Balikpapan (SE Borneo) including waters out to 25 nautical miles.
Borneo, but only the north east coast between the ports of Kudat and Tarakan inclusive
The port of Jakarta
The port of Poso (Sulawesi)
Sumatera (Sumatra), but only the north eastern coast between 5º40’N and 0º48’N, excluding transit.

Middle East:
Bahrain excluding transit
Iraq, including all Iraqi offshore oil terminals
Israel
Lebanon
Qatar excluding transit
Saudi Arabia excluding transit
Yemen

Philippines, but only:
Mindanao, between the ports of Polloc Harbour and Mati inclusive
Sulu Archipelago including Jolo, as defined overleaf

Sulu Archipelago
The area enclosed between:
a) on the Western side, a straight line between Tanjung Bidadari (5º49′.6N, 118º21′.0E) to position 3º32′.0N, 118º57′.0E

b) on the South Eastern side, a straight line from there to position 5º50′.0N, 122º31′.0E, and thence northwards to position 7º06′.6N, 122º31′.0E

c) on the Northern side, a straight line from there to Batorampon Point Light (7º06′.6N, 121º53′.8E)

d) and on the North Western side, a straight line from there back to Tanjung Bidadari.

Yours sincerely, The Swedish Club Claes Lindh