DECEMBER 14, 1999

CIRCULAR NO. 17/99

TO MEMBERS OF THE ASSOCIATION

Dear Member:

BLUE CARDS

CLC CERTIFICATES

1969 AND 1992 CIVIL LIABILITY CONVENTIONS

For the last two years two separate regimes have been in force: the 1969 Civil Liability Convention (CLC) and the 1992 CLC. In order to ensure worldwide trading it has been necessary for ships to carry on board both a 1969 and a 1992 CLC Certificate. Ships registered in a CLC State are able to obtain one of these two Certificates from their Flag State. It has been necessary to obtain the other Certificate from a different State. Most owners of ships flying the flag of a 1992 CLC State have obtained their 1969 CLC Certificates from the ship registries of either Malta or Panama. A problem arises for the year 2000 policy year since, for the reasons described below, it is expected that neither of these States will be able to issue 1969 CLC Certificates valid for the entire year.

Panama has ratified the 1992 CLC and denounced the 1969 CLC. Its denunciation will take effect on May11, 2000. Malta is expected to ratify the 1992 CLC and denounce the 1969 CLC this month. It has proved difficult to find a 1969 CLC Ship Registry willing to issue 1969 CLC Certificates to foreign vessels.

The International Maritime Organization

This problem was debated at the recent Assembly of the International Maritime Organizations (IMO). The IMO passed a resolution inviting the 1969 CLC States not to require ships holding 1992 CLC Certificates to also hold 1969 CLC Certificates. Such States were urged to accept 1992 Certificates as meeting the requirements of the 1969 CLC.

The Effect of the IMO Resolutions

1. Ships registered in 1992 CLC States need only obtain a 1992 CLC Certificate from their Flag State. This should be sufficient evidence of insurance even when calling at ports in a 1969 CLC State.
2. Ships flying the flag of a 1969 CLC State will need to obtain a 1969 CLC Certificate from their Flag State and a 1992 CLC Certificate from a 1992 CLC State, e.g. the United Kingdom.
3. Ships flying the flag of a State which is not party to either the 1969 CLC or 1992 CLC, should obtain a 1992 CLC Certificate from a 1992 CLC State, e.g. the United Kingdom. This then should be sufficient evidence of insurance when calling at ports in either a 1969 or a 1992 CLC State.

Recommendations

It is recommended that all ships carry on board a copy of the relevant IMO Resolution. This Resolution is attached to this Circular as Annex I. A list of countries which are parties to the 1969 and 1992 CLC are attached as Annex 2.

Yours faithfully,

Joseph E.M. Hughes, Chairman & CEO

Shipowners Claims Bureau, Inc., Managers for

THE AMERICAN CLUB

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