Cover in respect of biological and bio-chemical weapons

The risks covered through the Pooling facility are in respect of the Members’ liability:

1. To pay damages, compensation or expenses in consequence of the personal injury to or illness or death of any seaman (including diversion expenses, repatriation and substitute expense and shipwreck unemployment indemnity).
2. For the legal costs and expenses incurred solely for the purpose of avoiding or minimising any other P&I liability arising from a bio-chemical event (other than under Rule 19(21) Risks Incidental to Ship Owning).

The Pooling facility will be continued for owned entries (including a charter by demise or bareboat chartered entry) for the 2020/21 policy year and the limit of cover will be maintained at USD30 million in the aggregate each ship any one accident or occurrence or series there of arising from any one event.

Risks Period: 20 February 2020 – 20 February 2021

It is hereby understood and agreed in accordance with the provisions of Rule 25 that as from noon GMT 20 February 2020 the following will form part of the Terms of Entry:

Biological and Bio-Chemical Weapons Clause

1.1 Subject to the terms and conditions and exclusions set out herein, cover is extended to include the liability of the Member: (a) in respect of seamen under Rule 19(1), and (b) for legal costs and expenses under Rule 19(20)(A).

1.2 where such liability would be recoverable under the Rules and Terms of Entry: (a) save for the exclusion of war risks contained in Rule 25; and (b) such liability could not be recovered under any other policy of insurance providing cover to replace that so excluded solely by reason of the operation of an exclusion of losses, liabilities, costs and expenses directly or indirectly caused by or contributed to by or arising from (i) any chemical, biological, bio-chemical or electromagnetic weapon, or (ii) the use or operation, as a means for inflicting harm, of any computer, computer system, computer software programme, malicious code, computer virus or process or any other electronic system.

1.3 provided always that the extension of cover set out herein shall not apply to liabilities, costs, losses and expenses arising from: (a) explosives or the methods of detonation or attachment thereof; (b) the use of the Entered Ship or its cargo as a means for inflicting harm, unless such cargo is a chemical or bio-chemical weapon. (c) the use of any computer, computer system or computer software programme or any other electronic system in the launch and/or guidance system and/or firing mechanism of any weapon or missile.

Learn more by reading the circular herebelow