Club Cover for MLC Liabilities - Amendments to P&I Class Rules 19(1), Liabilities in Respect of Seamen, and Rule 20, Payments First by the Member

CIRCULAR REF: 2013/022

CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS

As advised in our Circular 2013/013 of 6 March 2013, the Maritime Labour Convention 2006 (MLC) will come into force on 20 August 2013.  As set out in the Circular, to assist Members in complying with the financial security requirements of the MLC, the wording of the Club Rules was amended to extend the scope of cover to include various repatriation expenses under MLC.

After further consideration, the Managers recommended to the Directors that additional amendments should be made to the P&I Class Rules to clarify the scope of cover provided for MLC liabilities.  In particular, the Managers wished to ensure that the Club has a right of recovery in respect of certain MLC liabilities for which the vessel’s Certificate of Entry will be used as evidence of insurance but for which it is not intended the Member would have a right of recovery from the Club if the Member had paid in the first instance.

At their meeting last week, the Directors confirmed the amendments to Rules 19(1) and 20 recommended by the Managers.  In accordance with Article 10.3.2 of the Club’s Articles of Association, these amendments will take effect immediately (although as indicated above, the convention itself does not come into force until August 2013).  The P&I Class Rules appearing on North’s website (http://www.nepia.com/publications/) have been updated, but for ease of reference, the new wordings are attached.

Should you have any queries, please do not hesitate to contact the undersigned.

ADRIAN DURKIN

MANAGER – North Insurance Management Limited

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