LoU_Cover_Letter.pdf (578 kB) 28/04/2025
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19/08/2014
When the Club issues a debit note and corresponding credit note for brokerage, for example at a renewal, it also supplies this summary to clarify the transactions. This can be particularly helpful when a multi-ship fleet is renewed, or when there have been offsets for ships going off-risk.
The Club’s documentation process has automated the production of letters of undertaking to finance interests who demand to be provided with benefit of cover for war risks. These letters can be effortlessly despatched direct to the finance interest by the broker or shipowner.The letter of undertaking is addressed directly to the required finance interest on Club paper and clearly sets out their rights in terms of benefit of cover, confirmation of the appropriate loss payable clause on the certificate of entry and the necessary notice in case of impending termination of cover for any reason.
The Club issues its debit notes showing the gross premium payable only. Brokerage is itemised on a separate credit note as well as the “Debit/Credit Note Summary”. Many brokers save on time and administration cost by forwarding this debit note directly to the shipowner. The debit note number is displayed in bold capitals in the title for ease of reference. The basic computation of premium from insured value and applicable rate is also displayed followed by a due date and the period to which the premium applies.
In common with other leading mutual such as the International Group P&I Clubs, the UK War Risks Club issues a certificate of entry which evidences the shipowner’s insurance and highlights some key aspects of the cover. The Club issues an individual certificate of entry for each ship which takes account of the varied assureds that may be included in that cover, the specific insured values of both hull and other interests, the time period and also key terms of cover such as the enhanced limit of war risks P&I cover, definition of the AP areas at the time of issue, recognition of mortgage interests, ISPS compliance etc.
