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Passenger Solutions: War Blue Cards

As a response to the IMO's Athens Convention 2002 and the European Union's Passenger Liability Regulation

Shoreline Passenger Solutions

Shoreline Passenger Solutions (“SPS”) is an insurance and reinsurance facility which was formed by Shoreline Insurance Managers Ltd. to specifically insure or reinsure the War Risk exposures imposed by the IMO’s Athens Convention 2002 and the European Union’s Passenger Liability Regulation (“Athens 2002 PLR”). Following internal restructuring, Shoreline Ltd. (“Shoreline”) has replaced Shoreline Insurance Managers Ltd. Shoreline acts as the Lloyd’s Coverholder for a panel of Lloyd’s syndicates which forms the Insurer Panel for War Blue Cards issued directly to clients. The Insurer Panel is supplemented by selected London Company insurers in respect of War Blue Card reinsurances arranged on behalf of P & I Clubs.

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War Blue Card

SPS provides the War Blue Card (“Blue Card”) as evidence of this War insurance cover that shipowners require in order to comply with Athens 2002 PLR. In addition to the contingent cover implicit in the provision of this guarantee, SPS provides excess cover to shipowners such that in the event the primary war insurers are unable to satisfy all claims other than those brought by passengers under Athens 2002 PLR (i.e. crew, pollution, removal of wreck, to their existing policy limits without being curtailed by having to make provision for the PLR), SPS could then, in these worst of circumstances, find itself as a primary carrier of war claims brought against vessel owners by their passengers. SPS is accessible either directly to shipowners or through their brokers. SPS is also available as a reinsurance facility to those P & I Clubs (“Clubs”) who prefer to issue the Blue Card themselves.

The formation of SPS followed the conclusion of extended discussions with various Clubs regarding approval of terms under which Blue Cards will be issued, their audit of the proposed structure and their agreement of the adoption of the Shoreline brand for the SPS facility. The owners of Shoreline have not assumed any risks in respect of this facility.

Shoreline’s role as the Coverholder for the SPS facility includes:

  • Holding and processing “Application Form” data
  • Verifying via a questionnaire based application that owners have arranged in the market their primary War P & I covers
  • Issuing quotes against agreed rating formula based on simple measurement of Maximum Registered Passenger Capacity
  • Issuing Blue Cards supported by an insurance policy
  • Ensuring Flag States will approve the War Blue Card when presented by Owners
  • Maintaining website records of Blue Cards issued
  • Accounting for and payment of premium to the Insurer Panel
  • Working with the Clubs to access their claims service based on a co-operation agreement in respect of the adjustment of any claims