Affiliated Charterers Named on Owner's Entries

CIRCULATED TO ALL P&I CLASS MEMBERS, BROKERS AND DIRECTORS

The Association’s Circular to Members dated 15 February 2005 advised Members that where a charterer (other than by demise) is an affiliated company of an owner and named as a joint member on that Owner’s Entry, the liability of the Association for claims made against that joint member as a charterer will be limited to the Limitation Amount, ie the amount to which the owner could have limited its liability had it been entitled to limitation. Certificates of Entry for 2005 contain a term of entry to this effect as an amendment to the 2005 Rules.

The Association is pleased to advise that reinsurance is now in place which will provide an additional US$50,000,000 cover in excess of the Limitation Amount, effective from 20 February 2005. The Association’s liability to such affiliated charterers is now in accordance with the 2005 Rule 22 and the term of entry in existing certificates headed Charterers as Joint Members no longer applies. Cover is effectively restored to the level applying to the 2004 policy year.

Any Member who requires any additional information should contact the Association’s Underwriting Department.

WJM DOUGLAS MANAGER

North Insurance Management Limited

As Managers on behalf of the North of England P&I Association Limited