The IGA, last updated in 2019, governs how clubs compete. In particular, this is the case; The international group agreement of 198511 was informed to the clubs of the group that the inter-club-gentlemen agreement was contrary to Article 85(1) of the EC Treaty and it was decided that the agreement should expire. However, the members of the group`s clubs felt that an agreement was necessary to ensure the discipline necessary to maintain the pooling agreement. As a result, the International Group developed a new agreement which, after approval by the Commission, became the 1985 International Convention of the Group (IGA-1985). This agreement was exempted for ten years under Article 85(1) with effect from 20 February 1985. IntroductionOrdin order of 12. In April 1999, the Commission of the European Communities (`the Commission`) granted the 1999 International Group Convention (IGA) a ten-year exemption from Article 85(1) of the EC Treaty with effect from 20 February 1999. The decision removed the uncertainty that had arisen about the future of the IGA. This development provides a good opportunity to review the context of the agreement, including its history and main elements in its current form, with a particular focus on tendering procedures. The 1929 AgreementIn 1929, the clubs of the London group began to insure ships flying the flag of the United States, and it was decided that if one club of the group had made an offer to insure a ship under the American flag, no other club should offer a lower price.

However, U.S.-flagged vessels that were not registered in a group club and for which no offer had been made by a group club were “free business,” that is, there were no restrictions on the reward rating. The purpose of this agreement was to prevent unreasonably low prices on U.S.-flagged vessels from being noted on the backs of existing club memberships. The 1929 Agreement was included in the minutes of a meeting of the Parties to the October 1929 Pooling Agreement. HistoryThe first understanding The story behind the IGA is also the story of the pooling agreement, which came into being in 1899. Then the so-called London Group of P&I Clubs, which at the time consisted of six clubs, entered into the first claims-sharing agreement. The main objective of the pooling agreement was the same as it is today. It constituted the legal framework for the distribution of claims between the Group`s Clubs. It was only later, in 1951, that it also became a vehicle for the collective purchase of market reinsurance cover. Three fundamental agreements underpin the governance and operation of the Group, the Constitution of the Company, the International Group Agreement (the “AGREEMENT”) and the Pooling Agreement.

In order to implement the pooling agreement, certain mechanisms were necessary in 1899 and 1999 to ensure a minimum level of discipline between the parties. Thus, some time after the conclusion of the first pooling agreement, an agreement was reached between the parties to the effect that no attempt should be made to move a vessel from one club to another by offering a lower premium or other financial incentive. In those milder days, it was considered totally useless to codify this understanding in a written agreement. The Interclub Gentlemen`s Agreement, the 1929 Agreement, was in force until after the Second World War. In 1953, it was agreed that the principles of the 1929 Agreement should be extended to all enterprises. This was then codified in the so-called Inter-Club Gentlemen`s Agreement, which included, among other things, the following principle: If the owner of a ship registered in Club A requested an offer from Club B, Club B`s offer should be based on Club A`s premium rating. Again, the purpose behind the restriction of Club B`s reward odds was to avoid the unreasonably low rewards offered to earn a new tonnage based on a club`s existing membership. The IGA-85 contained detailed tendering procedures (the 20 February procedure and the 30 September procedure), which are described in more detail below, provisions on minimum rates for oil tankers and explicit provisions defining the penalty in case of violation of the agreement by a club. The IGA is an agreement between the P&I clubs involved in the pooling agreement. Thus, a club within the framework of the IGA is either the “Holding Club” or a “New Club”.

The term “Holding Club” is defined as follows: “Holding Club” (a) in respect of a vessel that is provisionally insured with one of the clubs, the club with which it is insured (or, if it is insured with more than one, each of them) ;(b) shall be interpreted in relation to a new vessel ( ) [as explained below]. The Group operates with a claims pooling and reinsurance structure that allows each club to offer coverage with very high limits of liability at a competitive price. contains an obligation for clubs to disclose their average expense ratio in their annual financial statements. The group`s clubs also insure part of their risks with a company-owned insurance company, Hydra Insurance Co. Ltd. It is a separate account company established under the laws of Bermuda, where each club holds an account and is responsible for its own cell within the prisoner. The captive partially reinsures the pool and retains an AAD of $100 million in the first layer of the market reinsurance contract. The group operates under a written constitution that defines the three fundamental objectives of the group, namely; The penalty for non-compliance with IGA procedures is a “reduced pooling facility” for a period of two years. For example, a “new vessel” is a new vessel or vessel that is currently purchased by an owner, that is, an “operator”, as defined below. Annual Review of the International Group of P&I Associations The group`s clubs enter into a common market reinsurance contract to make reinsurance claims that exceed the upper limit of the pool ($100 million) up to $2.1 billion per claim ($1 billion for oil pollution damage). .