AUGUST 13, 2026 CIRCULAR NO. 17/26 TO MEMBERS OF THE ASSOCIATION
Dear Member:
NOTICE OF CANCELLATION IN RESPECT OF WAR RISKS FOR CERTAIN COVERS
The Club’s reinsurers have issued a Notice of Cancellation in respect of war risks exposures within the Indian Ocean, Gulf of Aden, and Southern Red Sea, as defined below. Consequently, it is therefore necessary for the Club to issue a corresponding Notice of Cancellation to Members, which is hereby given, and will come into force with effect from 00:01 hrs GMT on August 17, 2026.
Please note that this Notice is in respect of War Risks coverage on non-mutual business, including, but not limited to Charterers Liability, Fixed Premium P&I cover, and Non-Poolable extensions and ancillary covers to mutual entries.
This Notice does not apply to mutual entries for P&I and FD&D cover.Upon expiry of the Notice at 00:01 hrs GMT on August 17, 2026, War Risks coverage under the above covers and extensions will automatically be terminated where any such liabilities, losses, damages, costs and expenses occur or arise in the waters specifically mentioned below:
Indian Ocean, Gulf of Aden and Southern Red Sea The waters enclosed by the following (the Boundaries):
a)on the northwest, by the Red Sea, south of Latitude 25°30’N b)on the northeast, from the Yemen border at 16°38.5’N, 53°6.5’E to high seas point 14°55’N, 53°50’E c)on the east, by a line from high seas point 14°55’N, 53°50’E to high seas point 10°48’N, 60°15’E, thence to high seas point 6°45’S, 48°45’E d)and on the southwest, by the Somalia border at 1°40’S, 41°34’E, to high seas point 6°45’S, 48°45’E
excepting coastal waters up to 12 nautical miles offshore of territories which are wholly or in part within the Boundaries.
The coastal waters exception above does not include the Bab el-Mandeb Traffic Separation Scheme, the Red Sea coast of Saudi Arabia that lies within the Boundaries, or the Yemeni coast.
This notice does not alter the position of any other area currently restricted or excluded under a Member’s respective policies.
All other terms and conditions remain unchanged.
The Club is finalizing a solution to provide a reinstatement of cover on an individual risk basis. Please contact the Club’s Underwriting Department for further details.
Yours faithfully,
Dorothea Ioannou, CEO Shipowners Claims Bureau, Inc., Managers for THE AMERICAN CLUB
