Circular 25/2012

TO ALL MEMBERS

17th December 2012

Issue of Blue Cards under EU Regulation on the Liability of Carriers of Passengers by Sea in the Event of Accidents 2009 (‘PLR’) - Guidelines for Members

Members have previously been advised that EU member states are required to bring into force the laws, regulations and administrative provisions necessary to comply with the EU Regulation on the Liability of Carriers of Passengers by Sea in the Event of Accidents 2009 (‘PLR’) by 31st December 2012.

1. The International Group (IG) Clubs are the main providers of the financial guarantees, the ‘Blue Cards’ that enable owners to obtain their International Convention on Civil Liability for Oil Pollution 1992 (CLC) and International Convention on Civil Liability for Bunker Oil Pollution Damage 2001 (Bunkers Convention) State certificates.

2. The same Blue Card system is envisaged under both the Athens Convention relating to the Carriage of

Passengers and their Luggage by Sea 1974, as amended by the 2002 Protocol (‘the Convention’) and the Passenger Liability Regulation on the Liability of Carriers of Passengers by Sea, (‘PLR’) which essentially gives effect to the key provisions of the Convention in all EU member states and the EEA states Norway, Iceland and Liechtenstein from 31st December 2012, irrespective of whether the Convention is in force or not. We understand that in addition to the EU and EEA States, Croatia will apply the PLR from 31st December 2012 as part of their EU accession to the European Union. Croatia’s date for accession to the EU is 1st July 2013.

Current EU member states: Austria, Belgium, Bulgaria, Cyprus, the Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom

Croatia will become a member of the European Union on 1st July 2013, subject to ratification by the national parliaments’ of all members’ states.

Current EEA member states are Iceland, Norway and Liechtenstein.

For the purposes of the PLR, the Club’s Board has taken a policy decision to issue Blue Cards in respect of non-war and war risks which take effect from 31st December 2012 to vessels flagged in EU/EEA states or engaged in international voyages to or from an EU/EEA state, and to vessels engaged in domestic seagoing voyages where the EU/EEA state has required such vessels to have insurance in place.

FAQs

When is a PLR Blue Card required?

PLR Blue Cards will be required by:

All seagoing ships licensed to carry more than twelve passengers and engaged in an international voyage, (i.e. where the place of departure and the place of destination are situated in two different states, or in a single state, if according to the contract of carriage or the scheduled itinerary, there is an intermediate port of call in another state) where:

The ship is flying the flag of or is registered in an EU/EEA state; or

The ship is calling at a port in an EU/EEA state; and

Seagoing ships licensed to carry more than twelve passengers and engaged in domestic seagoing voyages (i.e. solely within the waters of an EU/EEA state) where an EU/EEA state has extended the PLR to such class of ships.

PLR Blue Cards will not be required for passenger vessels which: (i) do not fly an EU/EEA flag and do not call at EU/EAA ports; or (ii) are not licensed to carry more than twelve passengers; or (iii) operate solely on inland waterways in the EU.

The entity required to maintain financial security is the ‘carrier’ who actually performs the whole or a part of the carriage. In order to ensure consistency with the Blue Cards already issued in respect of the Bunkers Convention and the 1992 CLC, the PLR Blue Cards should only be issued in the name of the registered owner and not the bareboat charterer or other entity.

Will primary war underwriters issue the War Blue Card?

No, commercial war underwriters are unable to provide the required war Blue Cards. Vessel owners will need to procure insurance cover via an alternative source, such cover to be available when the principal underlying war insurance is either insufficient in amount to meet the Athens Convention/PLR liability for passengers or if the underlying cover is terminated for policy reasons not permitted under the Convention/PLR.

How will the Shipowners’ Club satisfy the war risks aspect of the Convention?

The Club agrees to provide additional war risk cover and issue the necessary Blue Card. This insurance is conditional upon:

1. The vessel owner has in place the standard underlying insurance for P&I war risk and Hull & Machinery war risk up to the full value of the Hull on terms no less than the Institute Protection and Indemnity War Strikes Clauses Hull – Time 20th July 1997), with insurers whose financial security rating by Standard & Poor’s and/or AM Best is no lower than ‘BBB’ or as specifically agreed.

2. Completion of the application form set out in Annex I

3. Payment of the additional premium set in Member currency.

4. Athens PLR 2002 Extension Clause endorsed to the policy. See Annex II.

What is the form and issue of PLR Blue Cards?

The form of the PLR Blue Cards to be issued by the Club is contained in Annex III and IV to this document.

PLR Blue Cards should only be addressed to an authority in an EU/EEA state. It is anticipated that states will give responsibility to issuing PLR Certificates to the same authority which is already responsible for issuing CLC & Bunkers Convention Certificates.

All passenger vessels registered in an EU/EEA state must obtain their PLR state certificate from their state of registry.

What are the requirements to be met before issuing Blue Cards?

Completion and submission to the Association of the application form (Annex I)

Do yachts require Blue Cards?

In the Convention the following expressions have the meaning assigned to them:

‘carrier’ means a person by or on behalf of whom a contract of carriage

has been concluded, whether the carriage is actually performed by that person or by a performing carrier,

‘contract of carriage’ means a contract made

by or on behalf of a carrier for the carriage by sea of a passenger or of a passenger and his luggage, as the case may be,

‘passenger’ means any person carried in a ship

under a contract of carriage

Therefore, when considering if a Blue Card is required Members should consider if any contracts are entered into.

Issue of electronic Blue Cards

The vast majority of states that are party to the CLC and Bunkers Convention accept Blue Cards issued by IG clubs when issued in an electronic pdf. format. The IMO adopted a recommendation that was circulated to all IMO member states on 6th January 2011 (IMO Circular letter No. 3145) recommending that states that are party to the Bunkers Convention should accept electronic Blue Cards issued by IG clubs where the issue of the Bunkers Convention Blue Card can be verified on the relevant club’s website. The circular letter states that “As for Blue Cards issued electronically, such a practice is also recommended when it is evident that the e-mail comes from the P&I clubs.”

Vessels provided with PLR Blue Cards can also be verified on the club’s web site.

Data collection for preparation of Blue Cards

In view of the potentially large numbers of certificates that will need to be produced in a short time we have set up a simple web-based system to expedite the handling of applications.

Procedure for applying for a war and non war Blue Card from the Shipowners’ Club

Applications can be submitted via the Member’s appointed intermediary who will forward the relevant application form to their usual club contact.

Upon completion, submission and acceptance by the Club of the application form (Annex I) the Club will issue war and non-war Blue Cards in pdf. format which will be addressed to the registered owner of the entered vessel(s). The relevant vessel(s) entry will then be endorsed with the PLR extension clause (Annex II) and the relevant debit note issued and expedited as soon as possible.

Applications can only be made in the name of the registered owner. PLR certificates cannot be issued in the name of the manager, operator, bareboat charterer etc. Therefore the applicant must either be the owner, or have the authority of the owner to progress the application.

We only hold some of the information required for EU certificates in our files. Any information that we do not already hold will need to be input as part of the online application process. Before starting the application process, please ensure that you have all the necessary information available.

If you have any questions, please contact the Managers in London.

Application to P&I club for Athens 2012 PLR War Blue Card

Section 1: Ship/Blue Card Information

Name of Ship(s):

Distinctive number or letters:

IMO ship identification number(s):

GT:

Port of registry:

Flag:

Performing carriers:

(This field should contain details of the Registered Owner or Demise Charterer, as appropriate)

Name and full address of principal

place of business (if not registered office):

Normal geographical trading areas:

For non-EU flag ships, identify State Authority that will issue Athens/PLR Certificate:

Date from which Certificate required:

Date to which Certificate is required:

Maximum passengers capacity as per Ship's Certificate recorded by Flag State Authority:

Expected percentage (%) of year subject to Athens 2002 PLR Certification requirements:

(See note at end of this application form)

Annex l

Section 2: Underlying Primary War Cover

Owners confirm that

a) they have P&I War Risks Insurance provided as a separate limit to the Owner's Hull and Disbursements War Risks policies to at least the aggregate of the insured value of the Hull and insured amounts in respect of Disbursements of the vessel or minimum of USD 100,000,000 whichever is the lower, and on terms providing cover as per the Institute Protection and Indemnity War Strikes Clauses - Hulls Time CL.345 (20/7/87)*, and

b) they or their appointed agents hold insurance slips or contracts and/or policies for 100% of sums insured in respect of the underlying Primary War Covers described above.

*Equivalent war P&I clauses will be acceptable subject to the approval of the Association

Name of the lead insurer:

Domicile of the lead insurer:

S & P rating of the lead insurer:

List any insurers with S & P rating of BBB or less with respective percentages:

Name of insurer %

Total - BBB and less security

(If additional space required please provide details on a separate sheet)

Policy inception date:

Policy expiry date:

Primary War P&I Combined Single Limit all coverages: USD

Total Sum Insured Hull and Underlying Primary War Cover as per (a) above : USD

a) Owners or their appointed agent hereby undertake to advise the Association immediately in the event of any material change made to such insurances, including any change of insurer or intermediary,

b) to give advice to the Association in the case of receipt of any notices of cancellation from any of the underwriters, and

c) to respond to any enquiry from the Association in writing of the situation regarding payment of premium.

Owners or their appointed agent hereby confirm that the insurers of the P&I War Risks Insurances (Hull) have

a) endorsed the following onto their policy(ies)

"This policy is Primary and it is accepted that any payment or cover pursuant to any War Blue Card provided by the Association is contingent upon this policy not responding for all or part of valid Athens 2002 PLR claims and that the Athens 2002 PLR War Blue Cards shall not be deemed to be double insurance", and

b) undertake not to exercise rights of cancellation on default in payment of premiums without giving the Association ten days’ notice in writing.

Section 3: Terms and Conditions

We note that:

(1) The Association is prepared to provide War Certificates of Insurance per Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 2002 (1974 Convention with Protocol of 2002 to the Convention and 2006 Reservation and, subject to modifications made by the associated IMO Guidelines for Implementation of the Athens Convention), and/or Regulation (EC) No. 392/2009 of the European Parliament and of the Council of 23rd April 2009 on the liability of carriers of passengers by sea in the event of accidents (known as Passenger Liability Regulation) hereinafter collectively known as ‘Athens 2002 PLR’;.

(2) The Association’s cover is subject to terms and conditions as per the Association’s website/Attached document.

We agree that subject to this application and the terms and conditions referred to above, the Member’s cover remains in all respects governed by the Statutes/Bye-laws and Rules of the Association and the applicable terms of entry for the ship(s).

Section 4: Conclusion

We request you to supply evidence of War Insurance in the form of a standard Athens 2002 PLR War Blue Card to the relevant State Authority.

We warrant that the information supplied in connection this application is accurate and complete. In the event of any breach of this agreement, we will indemnify you and hold you harmless against all liabilities, losses, damages, risks, costs or expenses of whatsoever nature which you may suffer or incur under the terms of or as a result of issuing an Athens 2002 PLR War Blue Card pursuant to this application.

Signed by owners or their authorised representatives Date

NOTE

A ship which is a. seagoing, and b. licensed to carry 12 or more passengers will be subject to Athens/PLR certification requirements, if: 1. The ship is registered in an EU member state AND engaged in any international voyage whether within or outside EU waters, or 2. The ship is not registered in an EU member state but is engaged in an international voyage which involves entering or leaving a port in an EU member state, or 3. The ship is engaged in a domestic voyage, in an EU member state which has not deferred application to Class A & B ships or which has extended the application of Athens /PLR to Class C & D ships (see below for details). Currently Netherlands, Finland and Denmark apply the PLR to Class A, B, C and D ships, whilst Croatia, Poland, Sweden and France apply it to Class A and B ships). These classes are defined as follows: Classes of passenger ships;

Passenger ships are divided into the following classes according to the sea area in which they operate:

‘Class A’ means a passenger ship engaged on domestic voyages other than voyages covered by Classes B, C and D

‘Class B’ means a passenger ship engaged on domestic voyages in the course of which it is at no time more than 20 miles from the line of coast, where shipwrecked persons can land, corresponding to the medium tide height

‘Class C’ means a passenger ship engaged on domestic voyages in sea areas where the probability of exceeding 2.5 m significant wave height is smaller than 10 % over a one-year period for all-year-round operation, or over a specific restricted period of the year for operation exclusively in such period (e.g. summer period operation), in the course of which it is at no time more than 15 miles from a place of refuge, nor more than 5 miles from the line of coast, where shipwrecked persons can land, corresponding to the medium tide height

‘Class D’ means a passenger ship engaged on domestic voyages in sea areas where the probability of exceeding 1.5 m significant wave height is smaller than 10 % over a one-year period for all-year-round operation, or over a specific restricted period of the year for operation exclusively in such period (e.g. summer period operation), in the course of which it is at no time more than 6 miles from a place of refuge, nor more than 3 miles from the line of coast, where shipwrecked persons can land, corresponding to the medium tide height.

Members should contact the Association if they require further guidance

Athens 2002 PLR Extension Clause 2012

1. Cover

1.1 This entry includes cover for all liabilities incurred by the Member pursuant to Athens 2002 PLR for an incident occurring during the policy period but only in respect of claims arising out of those perils specified within the IMO Reservation and Guidelines for the Implementation of the Athens Convention adopted 19th October 2006, namely:

− war, civil war, revolution, rebellion, insurrection, or civil strife arising there from, or any hostile act by or against a belligerent power

− capture, seizure, arrest, restraint or detainment, and the consequences thereof or any attempt thereat − derelict mines, torpedoes, bombs or other derelict weapons of war − act of any terrorist or any person acting maliciously or from a political motive and any action taken to

prevent or counter any such risk − confiscation and expropriation.

The indemnity provided for under this cover is payable if and to the extent that:

− Limits of Underlying War Covers arranged for the Member are exceeded by other claims having been settled and having fully absorbed cover otherwise disposable for liabilities qualifying for settlement under Athens 2002 PLR

or

− any claims by the Member under Underlying War Covers are denied as a result of the assertion by the underwriters thereon of a policy defence or the breach of policy terms and/or conditions or

− the Member is unable to recover claims from Underlying War Covers for any reason including cancellation thereof and/or

− the Member is required to make advance payments to passengers within the time constraints imposed by Article 6 of the Passenger Liability Regulation.

1.2 The maximum indemnity payable hereunder each incident shall be the amount prescribed by Athens 2002 PLR as the limit of liability of the Club or other person providing evidence of insurance.

1.3 The Club shall not be obliged to indemnify the Member, or pay any claims at the request of the Member, until the proper legal assessment of liability under Athens 2002 PLR and/or the Club at its discretion decides to make payments, interim or otherwise, in order to mitigate any potential liability having taken into consideration professional legal advice.

It is understood, within the IMO Guidelines for Implementation of Athens 2002, that the Association may be obliged to withhold from settlements to passenger claimants certain amounts when, in the opinion of the Member and the Club, claims might be presented which in the aggregate exceed the relevant ship’s overall limitation as defined in Athens 2002 PLR and ahead of a proportionate distribution of all claims against the Member.

Annex ll

1.4 If and to the extent that the Club pays any Athens 2002 PLR claim either direct to passengers or by way of indemnity to the Member, they shall be entitled, on the terms set out in clause 5 below, to exercise by subrogation such rights of recovery from the Underlying War Covers as are available to the Member.

1A. Financial Security

1A.1 The Association agrees to act as guarantors of the Member’s liabilities under Athens 2002 PLR and to provide evidence of war insurance attesting that this cover is in force, for the purpose of enabling the Member obtain certification of insurance as required by Article. 4 bis of Athens 2002 PLR.

1A.2 The Association will accordingly meet all liabilities incurred by them to passengers under Athens 2002 PLR in their capacity as guarantors arising from the provision of such evidence of war insurance.

Contained within the provisions of Athens 2002 PLR are exemptions from liability, amongst which the following are stated:

a) War Automatic Termination and Exclusions Clause b) 30 days’ notice clause in cases not covered by War Automatic Termination and Exclusion

Clause c) Institute Radioactive Contamination, Chemical, Biological, Biochemical and Electromagnetic

Weapons Exclusion Clause CL370 10/11/03 d) Institute Cyber Attack Exclusion Clause CL.380 10/11/03.

The full wordings of such exemptions are to be found within Appendix A of the Guidelines for the implementation of Athens 2002 PLR.

1.A.3 In accordance with Athens 2002 PLR:

a) The Association liability shall be applicable only to passenger claims brought under Article 3, paragraphs 1 or 2 of Athens 2002 PLR, paragraph 1.2 of the Reservation, and paragraph 2.2 of the associated Guidelines

b) In accordance with Article 4 bis, paragraph 11 of Athens 2002 PLR, any sums provided by

insurance maintained in accordance with paragraph 1 of the same article, shall be exclusively for the satisfaction of claims from passengers for death or for personal injury under Athens 2002 PLR and any payments made of such sums shall discharge any liability arising under Athens 2002 PLR to the extent of the amounts paid.

c) The Association obligations in respect of each incident shall be reduced by any payments

effected by the Member and/or their Underlying War Cover insurers in their names or on their behalf and/or other parties defined in the Evidence of War Insurance in respect of liabilities incurred and settled under the terms of Athens 2002 PLR.

d) subject to any reduction in its obligations permitted under clause 1.A.3 c) above, the Club’s

obligations in respect of each incident shall be satisfied in full once the total amounts paid to all claimants equals the limit applicable to each ship.

1.A.4 If and to the extent that the Association, in its capacity as guarantor, incurs liability to passengers pursuant to Athens 2002 PLR, it shall be entitled, on the terms set out in clause 5 below, to exercise by subrogation such rights of recovery from the Underlying War Covers as are available to the Member.

2. Duration

This cover is arranged in respect of losses arising out of an event occurring during the period from entry into force of Athens 2002 PLR (as defined below) to noon GMT 20th February 2013 or cover periods as declared.

3. Limit

The maximum indemnity payable hereunder shall be the amount prescribed by Athens 2002 PLR as the limit of liability of the Club providing evidence of insurance, namely the lower of:

SDRs 250,000 per passenger registered as being on board the ship at the time of the occasion of the incident, the subject of the claim hereon

or

SDRs 340,000,000

as required each incident.

The Association will also pay the legal costs incurred by the Member or which the Member may be compelled to pay in contesting liability or taking proceedings to limit liability in respect of any claim covered hereon, with the prior written consent of the Club.

4. Definitions (for the purposes of this Insurance)

4.1 ‘Athens 2002 PLR’ means the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 2002 (being the 1974 Athens Convention as amended by the Protocol of 2002 to the Convention and the 2006 Reservation, and subject to modifications made by the associated IMO Guidelines for Implementation of the Athens Convention), and/or Regulation (EC) No. 392/2009 of the European Parliament and of the Council of 23rd April 2009 on the liability of carriers of passengers by sea in the event of accidents (also known as ‘Passenger Liability Regulation’).

4.2 ‘Underlying War Covers’ means the combination of War Risks insurances as summarised:

4.2.1 P&I War Risks Insurances provided as a separate limit to the Member’s Hull and Disbursements War Risks policies to at least the aggregate of the insured value of the Hull and insured amounts in respect of disbursements of the Member’s ship or a minimum of USD 100,000,000 whichever is the lower and on terms providing cover as per the Institute Protection and Indemnity War Strikes Clauses - Hulls Time CL.345 (20/7/87) and/or the Institute War and Strikes Clauses - Hulls Time CL.281 (1/11/95) and/or other equivalent War P&I clauses (to be approved by Slip Leader).

and

4.2.2 P&I War Risks (International Group P&I Clubs) as endorsed as an extension to the entry of the Member’s ship into an International Group P&I Club. Such entry means an unrestricted entry into a Protection and Indemnity Association which is a member of the International Group of P&I Clubs

4.3 ‘Evidence of War Insurance’ means the documentary proof (Certificates furnished as evidence of (War) insurance pursuant to Article 4 bis of the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 2002) attesting that insurance is in force in compliance with the stipulations of Athens 2002 PLR.

4.4 ‘Athens Certificates’ means the Certificate of Insurance or Other Financial Security in respect of Liability for the Death or Personal Injury to Passengers issued in accordance with the Provisions of Athens 2002 PLR.

4.5 ‘Total Claims’ means the aggregation of Athens 2002 PLR Claims, non-Athens 2002 PLR passenger claims and other claims including, but not limited to claims in respect of crew, wreck removal and pollution each incident.

5. Underlying War Cover and Rights of Subrogation

5.1 The Association’s liability to the Member under this cover shall be determined by the policy terms and conditions. Subject to those terms and conditions, the Association is entitled to seek to recover from the Underlying War Covers any and all payments made pursuant to liabilities incurred by the Member under Athens 2002 PLR.

5.2 No Evidence of War Insurance will be issued by the Association unless the Member arranges the insurances that comprise the Underlying War Covers, with War Risks Insurers approved by the Club as described at 4.2.1 and 4.2.2 respectively.

The Member is to provide corresponding confirmation of such cover prior to the annual inception of each policy and/or entry period, stating the schedule of insurers with whom they arrange such policies or entries and that these policies or entries will be maintained in force without intentional breach of cover for the duration of any Evidence of War Insurance on behalf of the relevant ships.

The Association agrees that the conditions above shall be deemed to be satisfied in respect of the ships pending re-confirmation of the Member’s renewal of war policies, including if required, transfer between war insurers.

The Member is obliged to take all reasonable steps to preserve such coverage including, but not limited to, the maintenance of cover in accordance with approved market practices in the event that any ship insured hereunder navigates in waters that are subject to the current JWC Hull War, Strikes, Terrorism and Related Perils Listed Areas (3rd March 2011) (JWLA017) and any updated version thereof.

5.3 Any and all payments made by the Association in its capacity as guarantor under the provisions of Athens 2002 PLR shall be deemed to be made as agent of, and for the account of, the Member whether or not it is obliged or liable to the Member under this cover.

5.4 Upon the payment of any sums hereunder whether by way of indemnity or pursuant to Athens 2002 PLR, the Association shall be subrogated to all the rights and remedies of the Member, who is under a duty to assist, and co-operate with the Club in their efforts to effect recovery of any such payment.

In event that the Association, having paid any such sums, prove unable to effect a recovery under the Underlying War Cover by reason of a policy defence or the breach of policy terms and/or conditions involving the actual fault or privity of the Member, the Association reserves the right to seek recovery of such sums from the Member.

5.5 If it appears that estimated Total Claims are reasonably likely to exceed the cover available under the Underlying War Covers, the Association will, upon request of the Member agree to refrain from exercising rights of recovery pursuant to the preceding clause 5.4 from the Underlying War Cover insurers, unless and until and to the extent that the estimated Total Claims are found not to exceed the available cover provided by the Underlying War Covers.

5.6 If the insurers of the Underlying War Covers have paid Athens 2002 PLR claims (whether directly to claimants or by way of reimbursement of the Member or the Association) and Total Claims are

subsequently found to exceed the limit of the Member’s Underlying War Covers, the Association hereon will reimburse the insurers of the Underlying War Covers in respect of such Athens 2002 PLR payments if and to the extent that Total Claims exceed the limit of the Underlying War Covers(subject always to the limit of this cover as defined at clause 3).

5.7 The Association is entitled to call for and to have received on their own behalf and on behalf of the Member, confirmations of cover and undertakings from the insurers of the Member’s P&I War Risks Insurances (Hull) (as described at 4.2.1 above) that they will issue at least 30 days’ notice of their intention to cancel the insurance by reason of the failure to pay, when due and demanded, any premium sums due.

5.8 The Club is entitled to maintain on file all information submitted in the Application Forms for Evidence of Insurance.

5.9 It is understood and agreed by the parties that the provisions of clause 5.6 above confer a benefit on the

insurers of the Underlying War Covers which is intended to be enforceable by those insurers under the Contracts (Rights of Third Parties) Act 1999.

6. Notification of Claim

The Member shall promptly notify the Managers in writing any circumstances which may give rise to a claim under this insurance within 14 days of their becoming aware of the occurrence of an event that could give rise to a claim to Underlying War Covers and shall thereafter keep the Association fully informed of all developments.

7. Claims Procedures

The Association and the Member agree:

7.1 to encourage the primary war risk underwriters to instruct the Association to adjust claims on their behalf as well as on its own behalf

7.2 that in adjusting Athens 2002 PLR claims the Member and its representatives shall seek to minimise the need for adjustment or reallocation of claims payments by way of subrogation under clause 5.4 above, reimbursement under 5.6 above or otherwise between the Association and insurers on the Underlying War Covers.

8. Termination

In accordance with the conditions set out above under which they issue Evidence of War Insurance:

8.1 The Association shall be entitled to request that the terms under which Evidence of War Insurance is provided be renegotiated immediately and/or Notice will be tendered to the Authority to whom the Athens 2002 PLR Certificate is addressed within seven (7) days of the receipt of any Notices of Cancellation or advices of withdrawal of the Member’s Underlying War Covers to cancel any associated Evidence of War Insurance

8.2 The Association shall be entitled to request that the terms under which Evidence of War Insurance is provided be renegotiated immediately and/or tender Notice to the Authority to whom the Athens 2002

PLR Certificate is addressed within 7 days of learning of any cessation or breach of conditions of the Member’s Underlying War Covers to cancel any associated Evidence of War Insurance

8.3 The Association shall be entitled to request that the terms under which Evidence of War Insurance is provided be renegotiated immediately tender Notice to the Authority to whom the Athens 2002 PLR Certificate is addressed within seven days of the discovery that any one of the following circumstances has occurred since the inception date of this Policy:

a) a State Insurance Department or similar regulatory authority has ordered an insurer involved as part or all of security of the ‘Underlying War Covers’ to cease accepting business, or

b) an insurer involved as part or all of security of the ‘Underlying War Covers’ to cease accepting business has become insolvent or has been placed into liquidation or receivership (whether voluntary or involuntary), or there has been instituted against it proceedings for the appointment of a receiver, liquidator, rehabilitator, conservator, or trustee in bankruptcy, or other agent known by whatever name, to take possession of its assets or control its operations, or

c) the AM Best rating of an insurer involved as part or all of security of the ‘Underlying War Covers’ has been assigned or downgraded below A -, or

d) the Standard and Poor’s rating of an insurer involved as part or all of security of the ‘Underlying War Covers’ has been assigned or downgraded below BBB.

NOT TRANSFERABLE No. P&I/ To:

Certificate furnished as Evidence of Insurance pursuant to Article 4 BIS of the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 2002

Name of Ship: IMO Number (where applicable): Distinctive Number or Letters: Port of Registry: Name and full address of the Principal Place of Business of the carrier who actually performs the carriage: THIS IS TO CERTIFY that there is in force in respect of the above named ship while in the above ownership a policy of insurance satisfying the requirements of Article 4 bis of the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 2002, subject to all exceptions and limitations allowed for non-war insurers under the Convention and the implementation guidelines adopted by the Legal Committee of the International Maritime Organisation in October 2006, including in particular the following clauses:

Institute Radioactive Contamination, Chemical, Biological, Bio-Chemical and Electromagnetic Weapons Exclusion Clause (Institute of London Underwriters Clause No. 370); Institute Cyber Attack Exclusion Clause (Institute of London Underwriters Clause No. 380); The defences and limitations of a provider of compulsory financial security under the Convention as modified by the Guidelines, in particular the limit of 250,000 units of account per passenger on each distinct occasion; The insurance shall only cover liabilities subject to the Convention as modified by the Reservation and Guidelines for implementation of the Convention adopted by the Legal Committee of the International Maritime Organisation of 19th October 2006; The proviso that any amounts settled under the Convention shall serve to reduce the outstanding liability of the carrier and/or its insurer under Article 4 bis of the Convention even if they are not paid by or claimed from the respective war on non-war insurers.

Period of Insurance: from 31st December 2012 to Noon GMT 20th February 2013 Provided always that the insurer may cancel this Certificate by giving three months’ written notice to the above Authority whereupon the liability of the insurer hereunder shall cease as from the date of expiry of the said period of notice but only as regards incidents arising thereafter.

Annex lll

Annex lll

NOT TRANSFERABLE No. P&I/ Date: This certificate has been issued for and on behalf of the insurer: The Shipowners’ Mutual Protection & Indemnity Association (Luxembourg) 16, Rue Notre-Dame, L-2240 Luxembourg. By: Mr Ian Edwards Underwriting Director THE SHIPOWNERS’ PROTECTION LIMITED Managers of the above Association

NOT TRANSFERABLE No. WAR/ To:

Certificate furnished as Evidence of Insurance pursuant to Article 4 BIS of the Athens

Convention relating to the Carriage of Passengers and their Luggage by Sea, 2002 Name of Ship: IMO Number (where applicable): Distinctive Number or Letters: Port of Registry: Name and full address of the Principal Place of Business of the carrier who actually performs the carriage: THIS IS TO CERTIFY that there is in force in respect of the above named ship while in the above ownership a policy of insurance satisfying the requirements of Article 4 bis of the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 2002, subject to all exceptions and limitations allowed for compulsory war insurance under the Convention and the implementation guidelines adopted by the Legal Committee of the International Maritime Organisation in October 2006, including in particular the following clauses:

War insurance shall cover liability, if any; for the loss suffered as a result of death or personal injury to passenger caused by:

war, civil, war, revolution, rebellion, insurrection, or civil strife arising there from, or any hostile act by or against a belligerent power capture, seizure, arrest, restraint or detainment, and the consequences thereof or any attempt thereat derelict mines, torpedoes, bombs or other derelict weapons of war act of any terrorist or any person acting maliciously or from a political motive and any action taken to prevent or counter any such risk confiscation and expropriation

and may be subject to the following exemptions, limitations and requirements:

War Automatic Termination and Exclusion Clause In the event the claims of individual passengers exceed in the aggregate the sum of 340 million units of account overall per ship on any distinct occasion, the carrier shall be entitled to invoke limitation of his liability in the amount of 340 million units of account, always provided that:

Annex lV

NOT TRANSFERABLE No. WAR/

this amount should be distributed amongst claimants in proportion to their established claims, the distribution of this amount may be made in one or more portions to claimants known at the time of the distribution, and the distribution of this amount may be made by the insurer, or by the Court of other competent authority seized by the insurer in any State Party in which legal proceedings are instituted in respect of claims allegedly covered by the insurance.

30 days’ notice clause in cases not covered by War Automatic Termination and Exclusion Clause. Institute Radioactive Contamination, Chemical, Biological, Bio-Chemical and Electromagnetic Weapons Exclusion Clause (Institute of London Underwriters Clause No. 370); Institute Cyber Attack Exclusion Clause (Institute of London Underwriting Clause No. 380); The defences and limitations of a provider of compulsory financial security under the Convention as modified by the Guidelines, in particular the limit of 250,000 units of account per passenger on each distinct occasion; The insurance shall only cover liabilities subject to the Convention as modified by the Reservation and Guidelines for implementation of the Convention adopted by the Legal Committee of the international Maritime Organisation of 19th October 2006; The proviso that any amounts settled under the Convention shall serve to reduce the outstanding liability of the carrier and/or its insurer under Article 4 bis of the Convention even if they are not paid by or claimed from the respective war or non-war insurers.

Period of Insurance: from 31st December 2012 to Noon GMT 20th February 2013 Provided always that the insurer may cancel this Certificate by giving three months’ written notice to the above Authority whereupon the liability of the insurer hereunder shall cease as from the date of expiry of the said period of notice but only as regards incidents arising thereafter. Date: This certificate has been issued for and on behalf of the insurer: The Shipowners’ Mutual Protection & Indemnity Association (Luxembourg) 16, Rue Notre-Dame,

L-2240 Luxembourg By: Mr Ian Edwards Underwriting Director THE SHIPOWNERS’ PROTECTION LIMITED Managers of the above Association