A detailed consultation has taken place over recent months with the Boards of all thirteen Clubs in the International Group[ds_preview] on the question of extending the scope of the Group’s pooling and reinsurance arrangements to include cover for war and terrorism risks. The most immediate consequence arises in the context of the EU Passenger Liability Regulation which enters into force in the EU and EEA on 31 December 2012. It incorporates the substance of the Athens Convention 2002 together with the Reservation and Implementation Guidelines adopted by the IMO in 2006. Passenger vessels operating in or flying the flag of an EU/EEA state which are subject to the Regulation will be required to have a state issued Certificate on board confirming that there is insurance in place which meets the requirements of the Regulation. One of them is that insurance or other financial security is in place to cover liability to passengers for injury and death arising out of acts of terrorism.
The effect of the recent decisions by Boards is that P&I Clubs will not be able to provide insurance or financial security for terrorism risks under the Regulation in reliance on the International Group’s pooling and reinsurance facility.
