1996/2010 HNS Convention

1. 1996/2010 HNS Convention

2. The International Group The International Group of P&I Clubs (IG) • comprises 13 non-profit-making mutual insurance associations (“Clubs”), • insure third party liabilities relating to the use and operation of ships including damage arising from carriage of HNS by sea • Issue CLC and Bunkers Convention blue cards – decision to issue HNSC blue cards to be taken in due course LSLC - HNS - IG Presentation 2010

3. The International Group IG position on amendments to 1996 HNSC • IG supported implementation of a workable ‘96 Convention, but recognised the difficulties that States faced and stood ready to assist in any way possible • IG recognised: - necessity to keep the Convention international and to fend off any regional proposals, - need to preserve the reputation of the IMO and - need to produce solution most widely accepted. LSLC - HNS - IG Presentation 2010

4. The International Group IG Claims data – HNS Protocol negotiations • IOPC Fund – 5th Intersessional WG – March 2008 - Request from the UK et al for “information and data in respect of claims history for incidents that would have been caught by the HNSC had it been in force at the time of the incident occurring.” • 2002 – 2007: 126 HNS incidents • Cost of claims of 124 fell within 1996 HNSC shipowner limits. • No cases involving carriage of packaged goods exceeded 1996 HNSC limits LSLC - HNS - IG Presentation 2010

5. The International Group IG Claims data – HNS Protocol negotiations • IMO HNS diplomatic conference – April 2010 • IG updated claims data: 2002 – 2010: 192 incidents Cost of claims of 189 incidents fell within 1996 HNSC shipowner limits Total cost of claims paid in all 192 incidents = SDR 182.7 million No cases involving carriage of packaged goods exceeded 1996 HNSC limits LSLC - HNS - IG Presentation 2010

6. The International Group Implementation - certification • Convention applies to any sea-going vessel and seaborne craft of any type whatsoever – State opt out for vessels <200gt • Significant administrative burden to issue blue cards and State certificates • Bunkers Convention certification > 1000gt • CLC certification carrying > 2000 tons persistent oil as cargo • Question of issue of certificates to non-State party vessels upon entry into force LSLC - HNS - IG Presentation 2010

7. The International Group War and Terrorism cover • Convention exclusion for liability for acts of war - although the definition of war does not include terrorism - and for damage wholly caused by the intentional act of a third-party. • IG Clubs do not currently provide shipowners with primary P&I war risks cover • Bunkers Convention: - Member agrees to indemnify the Association where a payment is made and is recoverable under the Member’s P&I war risks policy or would have been if such a policy had been maintained LSLC - HNS - IG Presentation 2010

8. The International Group Conclusions • Importance of an internationally agreed regime • Clear need for a wide implementation and application of the Convention • Convention imposes a considerable administrative burden on States and financial providers • Certification issues will need to be addressed prior to entry into force LSLC - HNS - IG Presentation 2010

9. www.igpandi.org