The United Kingdom Mutual War Risks Association has announced that from 20 February 2009, it will accept applications for war risks insurance from shipowners with no connection with the United Kingdom. Hitherto, UK War Risks has concentrated on UK owned or flagged ships.
The aim is to secure a broader membership base to spread risks more widely and achieve greater operating economies of scale.
Marketing efforts will focus on existing members with vessels not connected with the UK and other owners familiar with P&I mutuality who currently buy their war risks cover in the commercial insurance market. Applications will be considered either directly or through brokers.
Andrew Ward, Director of Underwriting and Marketing for the UK War Risks Club, explained: ‘We have grown over the years and have been highly successful in attracting and retaining a blue chip membership.
Whilst remaining firmly committed to the UK, we believe that providing a mutual war risks solution internationally will be welcomed by a large number of shipowners, particularly when war risks insurance for shipping is once again front page news. We intend to build on our growth over recent years to make the Club larger and stronger.’
The UK War Risks Club has over 850 entered ships, valued at over $30 billion. The Board’s directors include representatives from Carnival, BP and Shell. For the 2008 policy year, UK War Risks offers maximum ship value of ‘390million/Eu25million/ $610million. A separate P&I limit (including crew) of ‘325million/Eu425million/ $500million is included as part of the Club’s standard cover. Rates for the 2009 policy year will be published in January.
UK War Risks will continue to offer cover for hull and machinery risks, detention and diversion, war risks P&I liabilities, sue and labor expenses and discretionary cover. UK registered ships will still be offered cover for risks arising from war involving the UK.