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Rule 14 Determination of Estimated Total Calls, Owner' General Discount and Supplementary Calls etc.

The Association may determine Estimated Total Calls and Supplementary Calls and variations in the Estimated Total Calls and Owners' General Discounts, either generally for all entries or separately for any entry or category of entries.

Guidance

While Rule 13 is the vehicle that gives the Association the power to levy the Supplementary Calls that may be required to ensure that the Association has the funds that are necessary to meet the liabilities and expenses of a mutual association if the Estimated Total Calls are considered insufficient to cover all claims and expenses, Rule 14 empowers the Association to determine whether such Calls shall be levied on the Membership in general or only on a particular category of Members. Likewise, it can be decided that general variations in the Estimated Total Calls pursuant to Rule 11.1 or Owners’ General Discounts according to Rule 12.1 shall apply to the Membership as a whole or only to an identified group of Members. and Rule 14 is the vehicle that determines how such Calls are to be quantified. 

…may determine…generally...or separately… (Rule 14)
Whereas Rules 11-13 are primarily designed to enable the Association to calculate Estimated Total Calls, Owners’ General Discounts and Supplementary Calls applicable to all Ships which are entered with the Association, Rule 14 enables the Association to make further adjustments in relation to a particular entry or to particular categories of entries reflecting changes in the underlying exposure. For example, it permits the Association to take account of enhanced risks which apply specifically to a particular Ship or class of Ships or Members or trade. For example, Members engaged in the carriage of persistent oil as cargo to the United States were for several years obliged to pay premium surcharges either per voyage or in some cases as a lump sum covering all such voyages. However, the Association ceased to require such surcharges at the commencement of the 2014 Policy Year. 

Rule 14 also allows the Association to determine the premium rating for a P&I entry and Defence entry of the same Ship on a different basis, which may be necessary due to underlying differences in the risk profiles of these different types of cover.