Presentation to the IMO Legal Committee

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Presentation to the IMO Legal Committee Powered By Docstoc
					International Group of P&I Clubs



 1996/2010 HNS Convention
The International Group

The International Group of P&I Clubs (IG)

•      comprises 13 non-profit-making mutual insurance
       associations (“Clubs”),

•      insure third party liabilities relating to the use and operation
       of ships including damage arising from carriage of HNS by
       sea

•      Issue CLC and Bunkers Convention blue cards – decision to
       issue HNSC blue cards to be taken in due course

    LSLC - HNS - IG Presentation 2010                                     2
The International Group

IG position on amendments to 1996 HNSC

•    IG supported implementation of a workable „96 Convention,
     but recognised the difficulties that States faced and stood
     ready to assist in any way possible

•    IG recognised:

              - necessity to keep the Convention international and
              to fend off any regional proposals,

              - need to preserve the reputation of the IMO and

              - need to produce solution most widely accepted.


LSLC - HNS - IG Presentation 2010                                    3
The International Group

IG Claims data – HNS Protocol negotiations

•    IOPC Fund – 5th Intersessional WG – March 2008

          - Request from the UK et al for “information and data in
     respect of claims history for incidents that would have been
     caught by the HNSC had it been in force at the time of the
     incident occurring.”

•    2002 – 2007: 126 HNS incidents

•    Cost of claims of 124 fell within 1996 HNSC shipowner limits.

•    No cases involving carriage of packaged goods exceeded
     1996 HNSC limits

LSLC - HNS - IG Presentation 2010                                    4
The International Group

 IG Claims data – HNS Protocol negotiations

 • IMO HNS diplomatic conference – April 2010
 • IG updated claims data:
               2002 – 2010: 192 incidents

               Cost of claims of 189 incidents fell within 1996 HNSC
               shipowner limits

               Total cost of claims paid in all 192 incidents = SDR 182.7
               million

               No cases involving carriage of packaged goods exceeded
               1996 HNSC limits



 LSLC - HNS - IG Presentation 2010                                          5
The International Group

Implementation - certification

•    Convention applies to any sea-going vessel and seaborne
     craft of any type whatsoever – State opt out for vessels
     <200gt

•    Significant administrative burden to issue blue cards and
     State certificates

•    Bunkers Convention certification > 1000gt

•    CLC certification carrying > 2000 tons persistent oil as cargo

•    Question of issue of certificates to non-State party vessels
     upon entry into force

LSLC - HNS - IG Presentation 2010                                     6
The International Group

War and Terrorism cover

•    Convention exclusion for liability for acts of war - although
     the definition of war does not include terrorism - and for
     damage wholly caused by the intentional act of a third-party.

•    IG Clubs do not currently provide shipowners with primary
     P&I war risks cover

•    Bunkers Convention:

              - Member agrees to indemnify the Association where a
              payment is made and is recoverable under the
              Member‟s P&I war risks policy or would have been if
              such a policy had been maintained

LSLC - HNS - IG Presentation 2010                                    7
The International Group

Conclusions

• Importance of an internationally agreed regime

• Clear need for a wide implementation and application of the
  Convention

• Convention imposes a considerable administrative burden on States
  and financial providers

• Certification issues will need to be addressed prior to entry into force




 LSLC - HNS - IG Presentation 2010                                      8
International Group of P&I Clubs




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