G7 price-cap per-voyage attestation
The G7 price cap coalition has published an update on the application of the price cap rules. The rules will take effect on 19 February 2024 (UK and US) and for cargoes loaded on or after 20 February 2024 (EU) (see footnote 2).
After reading the content below, please download the PDF document on this page, fill out the required fields in Price Cap Attestation Annex A and send the completed document to your designated underwriter.
AMENDMENT to this document, 19 February 2024: Please note that the UK published updated guidance on 16 February 2024 in which the deadline for providing per-voyage attestations and itemized ancillary costs was reduced from 30 days to 28 days.
Key changes
There are two key changes:
• Per-voyage price cap attestation – A requirement that attestations are provided on a per-voyage basis rather than on an annual basis as has previously been the case. If ship-to-ship (STS) transfer takes place, this is deemed to be a new voyage and requires a separate attestation.
• Itemised price information for ancillary costs – A requirement that itemised price information is provided upon request within 28 days by those with access to price information to those who do not have access, such as shipowners and insurers.
Implications on the insurance
A few implications on the insurance cover follows from these changes:
• The assured must provide the insurer with an attestation on an approved wording for each voyage within 28 days of the cargo being loaded (applicable for both loading at port and STS transfers).
• The assured must provide the insurer with itemised price information within 28 days of a request by the insurer.
A failure to meet any of these requirements may lead to the assured not discharging its obligations towards the insurer – resulting in loss of insurance cover.
Form of Attestation
The form of attestation to be provided to the insurer is either:
• Attestation form set out in Appendix A; or
• Lloyd’s Market Association wording.
Party to sign the Attestation
The entity to sign the attestation is the “person effecting the insurance” as defined in Clause 1-1 of the Nordic Maine Insurance Plan (NMIP) 2013, Version 2023. In other words, it is the “party who has entered into the insurance contract with the insurer” that is to sign the attestation.
Claims leader – Attestation
The attestation is to be addressed to the claims leader.
Co-insurers – Attestation
A co-insurer must be provided with a per-voyage attestation. This will apply pending any further clarification by way of updated guidelines from relevant authorities.
Norwegian Hull Club as co-insurer can accept an attestation addressed either to:
• the claims leader; or
• Norwegian Hull Club
Assureds/clients to conduct their own due diligence
Trades to Russia is still subject to significant legal restrictions. Cover is not available for trade that breaches applicable sanctions. All assureds/clients are encouraged to conduct thorough due diligence on the parties, cargoes and trade involved before engaging in trade to, through or from Russia.
Members of Cefor have issued similarly worded circulars (footnote 2).
[1] Links to the respective guidance:
UK Maritime Services Ban and Oil Price Cap Industry Guidance
EU Guidance on oil price cap: Oil price cap