MEMBERS of the British P&I Club have been asked their views on limiting catastrophe call liability.
In a questionnaire before a special general meeting in Brussels on December 13, they have been asked: 'Irrespective of whether you support the 20 per cent compromise proposal, do you agree with the board's longer-term strategy of seeking to achieve a limit on cover at a realistically collectable level?' The purpose of the meeting is to ask the members to vote on the rule changes necessary to bring a compromise proposal on limitation into effect on February 20 next year.
The proposal would mean a shipowner's liability to contribute to a catastrophe call would be limited to 20 per cent of each ship's property damage limitation fund under the 1976 Limitation Convention.
The club's manager, Thos R Miller & Son, has issued a circular on the issue.
A catastrophe or overspill claim is one which exceeds the US$1.5 billion limit of the International Group's reinsurance contract arrangements.
Any claim above this would fall back on the shipowners.
Arguments for a limit include the growing likelihood of a multi-billion dollar claim, too much for some to survive and adding greater financial burden on others.
