11 November 2020
Gard announced today that the Board has approved a new premium policy for mutual Members which will come into effect on 20 February 2021. Key aspects include:
This new discount is in addition to the 5% reduction in the last instalment of the ETC for the 2019 policy announced on 6 November, and that, instead of a General Increase, individual members rates will be adjusted to reflect their risk profile and claims record.
The Board also decided that the Owners’ Defence cover (FDD) will be offered as a fixed premium product from 20 February 2021, along with a wide range of supplementary covers to Owners’ Mutual P&I.
Rolf Thore Roppestad, CEO of Gard, said: “The premium policy for Mutual P&I balances the need for capital for the Gard group against the burden of premiums Members pay as owners of the group. The group’s strong results in recent years have been positive for our Members making the cost of our products lower.
“However, our previous practice of deferring any reduction in the ETC premium until several months after the end of the policy year in question has made budgeting harder for shipowners and makes it even harder for Members to appreciate the fact that the group’s superior performance has delivered lower prices.
“This is what has driven our review of the philosophy underpinning our model and the proposed changes. By bringing the discount forward to the beginning of the policy year, we aim to give our Members much greater transparency and predictability as to the real cost of buying mutual P&I products with Gard and rewarding them for being part of a strongly performing Club.”
Notes to Editors
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