Gard AS, a prominent entity of the Gard group comprising Gard P. & I. (Bermuda) Ltd, Assuranceforeningen Gard – gjensidig – and Gard Marine & Energy Limited, has issued Member Circular No. 16/2023 in January 2024, announcing amendments to the Rules for P&I and Defence cover for ships and other floating structures (“Rules for Ships”) and the Rules for P&I and Defence cover for mobile offshore units (“Rules for MOUs”). The circular outlines changes endorsed by the Boards of Directors of the Associations, scheduled to come into force on 20 February 2024.
Circular Breakdown
Gard AS, a part of the Gard group, including entities like Gard P. & I. (Bermuda) Ltd., and Assuranceforeningen Gard – gjensidig, announces amendments to its Rules for P&I and Defence cover for ships and other floating structures, effective from noon GMT on 20 February 2024.
1. Cargo Liability under Rule 34
Amendments align Rule 34 with the International Group Pooling Agreement, ensuring that insured owners do not waive rights of recourse against third parties. Changes specify liabilities covered, including breach of obligations related to cargo and unseaworthiness. The amended rule outlines exclusions to coverage, emphasizing adherence to the Hague/Hague-Visby Rules.
2. Fines and Rule 47
Rule 47 is updated to cover fines for accidental oil or substance discharge. Amendments clarify the interpretation of “accidental” and provide coverage conditions. The changes ensure consistency with the IG P&I Clubs’ agreement on the term “accidental.”
3. Confiscation of the Ship under Rule 49
Rule 49’s discretionary cover against confiscation due to customs law infringement is expanded to include smuggling activity. Amendments emphasize conditions for cover, such as the market value limit of the ship and the Member’s preventive measures.
4. Non-marine Personnel under Rule 56
Ambiguities in the interpretation of the Pooling Agreement corresponding to Rule 56 are addressed. Wording is adjusted to eliminate potential confusion regarding the location of non-marine personnel during a claim.
5. Disputes and Unpaid Sums under Rule 68
Rule 68.1 is revised to exclude disputes with Gard entities and introduces clarity regarding disputes involving Hull & Machinery insurers within the Gard group. The rule emphasizes non-coverage if unpaid sums, including Estimated Total Calls, remain.
6. Recoveries from Third Parties under Rule 84
Rule 84 undergoes changes to simplify provisions related to recoveries from third parties. Amendments aim to reflect existing practices, increase the Association’s recovery flexibility, and assist Members in challenging matters.
7. Governing Law under Rule 90
Rule 90 clarifies its application of the Norwegian Insurance Contracts Act and specifies mandatory provisions that cannot be excluded.
For the Rules for MOUs
8. Amendments to MOU Rules
Corresponding amendments are made to MOU rules, including updates to fines, excluded losses, and disputes, ensuring alignment with changes in the Rules for Ships.
Updated Rules for Ships and Rules for MOUs to be published on www.gard.no before the renewal date on 20 February 2024. Contact information for inquiries provided.
This comprehensive circular details significant amendments, providing clarity on cargo liabilities, fines, ship confiscation, non-marine personnel, disputes, recoveries, and governing laws for both ships and mobile offshore units.
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Source: GARD
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