1. Background

NorthStandard Club has received a Notice of Cancellation from its reinsurers in respect of certain war risks reinsured in the commercial market. Consequently, the Club has issued a corresponding Notice of Cancellation to Members and insureds.

This affects specific War Risks extensions attached to P&I and related covers.

2. Covers Affected

The Notice applies to the following extensions (2026 editions and applicable 2025 editions for events occurring after 24:00 GMT on 4 March 2026):

1. War Risks Clause for Additional Covers
2. Offshore P&I War Risks Clause
3. Fixed P&I War Risks Clause
4. P&I War Risks Clause attached to Charterers’ Entries
5. Clause 2, Section C – Traders’ Liability Cover
6. Offshore Bio-Chemical Risks Inclusion Clause

These extensions typically respond to war-related liabilities excluded under standard P&I terms.

3. Timeline

• Notice Period: 1 March 2026 (24:00 GMT) to 4 March 2026 (24:00 GMT)
• Automatic Exclusion Effective: 5 March 2026 (00:00 GMT)

From this time, the above extensions will no longer respond to incidents occurring in the specified areas.

4. Geographical Areas Excluded (From 5 March 2026)

War risks cover under the affected extensions will be excluded in respect of:

• Iran, including territorial waters (up to 12 nautical miles offshore)
• Persian/Arabian Gulf, including:
  • Gulf of Oman
  • Waters west of the defined line from Oman (Cape al-Ḥadd) to the Iran–Pakistan border

Other currently restricted or excluded areas under existing policy terms remain unchanged.

5. Operational & Commercial Implications

Shipowners and charterers should urgently review:

A. Voyage Planning

• Confirm whether scheduled or ongoing voyages involve Iranian waters or the defined Gulf region.
• Assess deviation or alternative routing options where commercially feasible.

B. Charterparty Considerations

• Review war risk clauses (e.g., CONWARTIME, VOYWAR equivalents).
• Evaluate rights to refuse orders to excluded areas.
• Confirm allocation of additional premiums or uninsured exposure.

C. Insurance Gap Analysis

• Identify potential uninsured liabilities arising from:
  • Crew injury/death
  • Pollution
  • Wreck removal
  • Cargo liabilities
  • Bio-chemical exposure (where applicable)
• Consult brokers regarding:
  • Standalone war risk policies
  • Market availability of buy-back cover
  • Additional premium arrangements

D. Contractual Risk Exposure

• Review indemnity provisions in offshore contracts and charter agreements.
• Confirm whether indemnity chains remain intact if P&I war risk extensions are excluded.

6. Risk Management Recommendations

1. Conduct immediate fleet exposure assessment.
2. Engage brokers to clarify alternative war risk arrangements.
3. Notify chartering and operations teams of geographic exclusions.
4. Document decision-making for voyages into affected regions.
5. Reconfirm crew safety protocols and crisis response procedures.

7. Important Clarification

• This Notice does not terminate standard P&I cover.
• It affects only the specified war risk extensions.
• Members who have not purchased these extensions are unaffected.
• All other terms and conditions remain unchanged.

Conclusion

From 00:00 GMT on 5 March 2026, vessels operating in Iranian waters and defined Gulf areas may face uninsured war-related liability exposure under the affected extensions.

Immediate review of trading patterns, charter commitments, and war risk insurance arrangements is strongly recommended.

NorthStandard