Why is this relevant?

• Clubs issuing blue cards become exposed to liabilities which they do not cover since
  

  -	there is no exclusion in the Convention for terrorism (though there is for war)
  -	terrorism is excluded from standard P&I Club cover

Do I have cover for terrorism?

• Owners' war risks policies will normally cover terrorism

What is the solution?

• Clubs in the IG require members requesting blue cards to have in place, and comply with the terms and conditions of, a war risks policy on standard terms with a separate limit for P&I liabilities. The limit should be for at least the proper value of the ship or USD 100 m, whichever the lesser. War risks underwriters will be expected to respond to claims arising out of terrorism. By requesting a blue card, Members will be deemed to have agreed to assign to the Association their rights under such insurance and against any third party

What do I need to do?

• Check that vessels have P&I war insurance which meets the above requirements
   
• Notify the war underwriters of assignment of rights