One Club News

Despite protection and indemnity (P&I) Clubs announcing that they are trying to achieve on average 2% increases in premium, ship owners with good records can look forward to reductions in premiums for P&) insurance at the 2016 renewals, according to Willis Group Holdings, the global risk advisory, re/insurance broking, and human capital and benefits firm. “The International Group (IG) market has announced an average general increase of around 2%, with two or three clubs at zero, the majority around 2.5% and one club at 5%,” noted Willis in its P&I Review 2015/16 report. “It is almost certain however that market forces will prevail and lower actual renewal results will be widely achieved.

In an unpublished opinion, the U.S. Court of Appeals for the Sixth Circuit affirmed a district court’s confirmation of a British arbitration award in favor of a protection and indemnity (P&I) club against plaintiff seamen. Acting on behalf of the seamen, a law firm sued States Steamship Company for alleged asbestos-related injuries. When States, which was in bankruptcy, did not answer, plaintiffs obtained a default judgment. Suit was then brought against two P&I Clubs that had insured States. One club prevailed on the “pay to be paid” provision in its policy. The suit against the second club was referred to arbitration in Britain in accordance with terms in the policy. The British arbitration was in favor of the club and included an award of legal costs and fees against plaintiffs.

The new vessel Maria Dolores for Virtu Ferries, due for delivery in the middle of this year, will be delivered by Austal Ship in January, according to a report by the Malta Independent Online. The delay is reportedly due to a shortage of labour in Western Australia. The vessel will carry 600 passengers in two lounges, one Club Class, 65 cars/campers and 10 trucks/TIR/coaches. The vessel has a cruising speed of 36 knots; crossings to Pozzallo will take 90 minutes, Catania three hours and Reggio Calabria four hours and 30 minutes.