All International Group Clubs as well as fixed premium Charterer’s Liability insurers are now issuing Notices of Cancellation (NOC) on P&I and Charterer’s Liability War Risks effective from 20 February 2024 for any vessels transiting or trading in the Red Sea or Gulf of Aden and Indian Ocean (as detailed below). 

The covers affected include, but may not be limited to:

  • Fixed Premium P&I War Risks
  • Charterers Liability War Risks Cover (including bunkers, freight at risk, salvage and General Average as a result of war risks)
  • Offshore War Risks Liability
  • Yacht War Risks Liability
  • Other ancillary non-poolable covers 

It does not affect the underlying Fixed Premium P&I or Charterer’s Liability insurances which remain fully in place.

Please note that mutual entries for P&I and FD&D with one of the International Group P&I Clubs are not affected with the Excess War Risks cover remaining in place.

What does this mean?

Broadly, if you are a charterer with a charterer’s liability policy, or an owner with a fixed premium P&I insurance, and you’re sailing in the Gulf of Aden, Red Sea or Indian Ocean waters, you will not be covered for your liabilities arising from War Risks whilst you are in that area.  This means, for charterers, there is no cover for liabilities such as:

  • Damage to hull;
  • Your contributions in general average or salvage;
  • Loss of bunkers (or freight if such cover is included in your policy);
  • Fines and pollution;
  • Any other liabilities that may arise as a result of an act of War.

Liability War Risks Cover remains in place until the vessel enters the Listed Area and should be reinstated immediately and automatically on departure from the Listed Area  (subject to the terms of your policy and the NoC). 

The below Area is as detailed in the Hull War Risks Listed Areas JWLA-032 released on 18 December 2023.

The Area is defined as:

Indian Ocean, Gulf of Aden and Southern Red Sea

The waters enclosed by the following boundaries:

a) on the northwest, by the Red Sea, south of Latitude 18°N

b) on the northeast, from the Yemen border at 16°38.5’N, 53°6.5’E to high seas point 14°55’N, 53°50’E

c) on the east, by a line from high seas point 14°55’N, 53°50’E to high seas point 10°48’N, 60°15’E, thence to high seas point 6°45’S, 48°45’E

d) and on the southwest, by the Somalia border at 1°40’S, 41°34’E, to high seas point 6°45’S, 48°45’E

excepting coastal waters of adjoining territories up to 12 nautical miles offshore unless otherwise

provided.

A map illustrating the Listed Area can be found here – please refer to the Gulf of Aden/Indian Ocean area.

What Next?

Terms to reinstate the cover in full are already starting to be offered (as at 15 February 2024) for those vessels that may specifically require cover for such transits. Further information will be released in due course but please contact us directly if you require assistance in this regard.

Please note that the above is general guidance only and each specific policy should be considered in accordance with the Notice of Cancellation, which terms shall always prevail.

Tagged with: , , ,