Posted on: 16 May 2016
The Shipowners’ Club has issued the Syria Sanctions circular providing a general overview of key sanctions that apply to Syria shipping and related insurance activities and also describing the potential impact of certain recent developments.
Members are referred to our Circulars dated 22 February 2016 and 21 March 2016.
As previously notified, the International Group (IG) has bought “fall-back” cover, which is designed to respond to reinsurance recovery shortfalls that would result from the inability of US-domiciled reinsurers on the Group GXL and Hydra reinsurance programmes to make payments due to the continuing application of US primary sanctions, for the 2016/17 policy year.
The IG has now been able to obtain a higher limit of cover (€100m) compared to that which was available initially (€70m) and further secured underwriters’ agreement to a second full reinstatement of cover. All other features of the cover remain unchanged.
The Group remains of the view that because of the limitations of fall-back cover, whilst mitigated to an extent by the increase in limit and the additional reinstatement, it does not provide a long term solution to Members’ needs. The Group therefore continues to engage with the US administration and a further report will be made in due course.
All clubs in the International Group have issued a similar Circular.
