International Group of P&I Clubs

Comments and clarifications on the evidence of the existence of insurance coverage as required by the

Insurance Directive

Naples 8 October 2012

The International Group

General observations from an IG perspective:

EU Insurance Directive text agreed in April 2009 is very different to

the original Commission proposal tabled in November 2005

Implementation of the Directive should not be complicated or difficult

No significant problems have arisen for the IG Clubs since

implementation effective date of 1 January 2012

Not all EU Member States have yet given effect to the Directive

2

The International Group

Explanations:

IG has, directly or indirectly, liaised with every single EU Member

State on implementation since the Directive was agreed in April 2009

Most owners already maintain third party liability insurance cover

Key provisions of the Directive reflect existing IMO Guidelines:

Article 3 (1) of Directive/Article 1.2 of IMO Guidelines:

“Insurance means insurance with or without deductibles, and comprises, for example, indemnity insurance of the type currently provided by members of the International Group of P&I Clubs, and other effective forms of insurance (including [proved] self-insurance) and financial security offering similar conditions of cover”.

3

The International Group

Position of EU Member States:

Acceptance of IG cover – Article 3 (1)

Acceptance of IG Club issued Certificates of Entry as evidence of

compliance – Article 6 (1)

Acceptance of non-IG P&I providers?

4

5

The International Group of P&I Clubs

Issues of Debate with States:

Scope of P&I to cover all claims subject to limitation?

Application to all seagoing vessels, seaborne craft of any type

whatsoever?

Non-ratification of LLMC 96 Protocol by some EU Member States?

International Group of P&I Clubs