The UK Defence Club, the provider of FD&D (legal costs) insurance to the maritime industry, has announced a 0% general increase in premiums for the 2016 policy year, the second consecutive zero premium increase, reflecting the continued financial strength of the Club.
The Club will also continue its Continuity Credits loyalty scheme, rewarding Members at three levels with premium reductions. Members will receive discounts of 2.5%, 5% and 7.5% for one, three and five years of Membership respectively, plus an additional 1.5% for those Members with their full fleet entered with the Club. To be eligible for the Continuity Credit, Members have to have an entry with the mutual for a minimum of one policy year.
Daniel Evans, Club Manager of the UK Defence Club, said: “The events of the last year have been dominated by matters relating to OW Bunkers and in particular the ongoing RES COGITANS dispute.
“If leave is granted to hear the case in the Supreme Court, we will maintain our fundamental belief that owners should not be exposed to paying twice for the same bunker stem. The outcome of this case has profound implications not only for the maritime industry but also many other industries.
“Against this background, the Board is cognisant of its duty to protect Members and utilise the financial strength of the Club to support them, notwithstanding an uncertain claims environment. The Club has managed its financial position and this allows us to use Continuity Credits to reward our Members’ ongoing commitment.
“Membership is increasing as ship owners and operators buy FD&D recognising the significant costs involved with litigation and the value and security FD&D insurance provides.