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G UIDELINES FOR
C ORRESPONDENTS
As the local “eyes and ears” of the Clubs, correspondents perform a key role looking after the interests of Clubs and their Members around the world. These Guidelines have been prepared to enable correspondents to work closely with the Clubs to continue to meet Members’ expectations for the delivery of the highest quality services. The Guidelines provide the foundation for a common approach to the handling of incidents and promote a consistent response by all correspondents when instructed by a Club which is a Member of the International Group of P&I Clubs.' The Guidelines supplement individual Clubs’ instructions to correspondents and cover issues common to all -Clubs.
LISTING OF CORRESPONDENTS
A) BRIBERY
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B) MONEY LAUNDERING
C) SANCTIONS
G O V E R N A N C E
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Clubs have best practice systems to deal with bribery, including `facilitation payments', and financial crime. Those systems extend to all correspondents and service providers. Compliance with the requirements of individual Clubs’ strict bribery prevention policies and anti-bribery laws² must be in addition to correspondents’ compliance with any other anti-bribery legislation that may affect them. The listing of a correspondent does not represent any contractual or agency relationship between the correspondent and a Club, nor does it create a right to be included in any subsequent list. Correspondents are not agents for the Clubs and are not automatically authorised to accept service of proceedings on behalf of the Clubs or any subsidiary or associated companies. The correspondent, although listed and named by a Club, will usually act for the shipowner/charterer whose ship is entered with the Club. Correspondents should have systems in place to ensure they and their subcontractors and service providers do not contravene anti-money laundering or tax evasion legislation. Such systems should include procedures to identify their clients and ensure that transactions are legal³. Correspondents must be contactable 24 hours a day and they must keep the Club advised of changes to staff/office communications details. Correspondents should regularly check their entries on Clubs’ websites and apps to verify that the Club has the correct contact details. Correspondents must be aware of economic and trade-related prohibitions and restrictions caused by applicable sanctions legislation imposed by States or international organisations. Such legislation may affect a Member and/or the trade they undertake either directly or indirectly and can affect the assistance Clubs are able to offer Members. In particular, Clubs may not be able to assist Members in providing a letter of undertaking or bank guarantee to secure a claim. Correspondents must operate to the highest ethical standards and have appropriate systems and procedures in place. It is important to note that failure to comply with these requirements could mean a correspondent risks delisting. ² for example, the UK Bribery Act 2010 and the United States Foreign Corrupt Practices Act 1977. ³ for example, the UK Proceeds of Crime Act 2002 (POCA), part 7, and the Criminal Finances Act 2017, part 3. A) It is the correspondent's responsibility to ensure that all third parties that they instruct or remit funds to are not listed as designated persons or organisations on any trade or economic sanctions lists, for example, those published and maintained by the United Nations, the United Kingdom, the European Union and the United States. The situation on sanctions can change and the correspondent should contact the Club concerned for specific advice.
D) DATA PROTECTION
Correspondents should be aware that Clubs, correspondents and service providers are subject to data protection legislation 4. Correspondents will routinely receive personal data for claimants and crew members. “Personal data” refers to information about an individual, such as their name, job description, date of birth, e-mail address, mailing address or health-related data. All personal data should be handled and stored carefully and distributed securely and no more widely than necessary.
E) SLAVERY AND HUMAN
TRAFFICKING
As part of the Clubs’ business and supply chains, correspondents must conform with the Clubs' zero- tolerance position in respect of modern slavery and human trafficking, including compliance with any relevant legislation 5. 4 for example, the UK Data Protection Act 2018 and the EU General Data Protection Regulation (Gl 5 for example, the UK Modern Slavery Act 2015.
F) CLIENT MONEY
Where permitted by local regulations, correspondents should operate a designated client bank account for the receipt of funds to pay claims. This account should be separate from the correspondents’ day to day business accounts.
G) PROFESSIONAL LIABILITY/ERRORS
AND OMISSIONS INSURANCE
It is prudent for correspondents to have adequate errors and omissions insurance that provides protection for their services, or those which extend to ownership of an associated company, arising from claims of negligence or failing to perform their professional duties.
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CONFLICTS OF INTEREST
A conflict check must be undertaken as s oon as instructions are received and the Club or Clubs must be informed of any potential conflict immediately. The most common circumstances where a correspondent may encounter a conflict of interest involve an owner and charterer (for example, when they have a cargo problem at a discharge port) where: a. both parties are entered with the same Club, b. the parties are entered in different Clubs and the
A
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R E P O R T I N G
In addition to Clubs’ websites, correspondents are reminded that there is a vessel search facility for owned vessels on the IG website at www.igpandi.org/ship-search/
A) FIRST NOTIFICATION
A correspondent may be notified of an incident or claim from a number of sources other than the Club, such as the Member, the ship's master, local agent, owner, charterer or directly from a claimant or the claimant’s insurer. For urgent matters (death, serious illness and injury, pollution, ship arrest, collision, groundings and service of legal proceedings), the first notification to the Club should be made by both telephone and email to the Club. For non-urgent matters, the first notification should be sent by email. In order to minimise any delay in obtaining a response when sending an email, the correspondent should try to identify the claims team or individual and only use the Club’s general email address if this cannot be done. Correspondents should be familiar with the risks covered by each Club, as set out in their rules. Not all Members will be covered for all these risks and so correspondents should seek confirmation of the extent of the cover from the Club. However, the correspondent is recommended not to stop dealing with matters whilst waiting to receive such confirmation. &のThe first notification to the Club should include: - The ship’s name and IMO number.
- The party requesting assistance and the nature of the assistance requested. - Any steps taken by the correspondent.
- Details of security demands and reasonableness. - Contact details for the correspondents and any service providers appointed.
B) SUBSEQUENT REPORTS
TO THE CLUB
Communication by phone remains extremely important and can be a useful addition to email reporting. It is important that correspondence is documented, so correspondents should avoid exchanges via social media, including apps such as WhatsApp and Messenger. Surveyors, lawyers or other experts must be encouraged to give you, as correspondent, timely updates which add value for the Club and Member. Where possible and unless otherwise instructed, the correspondent should ensure that all information from these sources is channelled through them and that they control the case locally. In the initial period following an incident, "no news is good news" does not apply and reports (including service providers’ reports) will be required on a frequent basis, including: - Details of the property damaged/person or persons
(as applicable). - Cause of the incident. - Steps to be taken to protect the Member's position, including measures to preserve the Member’s right of redress against third parties, including any time limits.

C. PERSONAL INJURY REPORTS
Reports into personal injury incidents can by their very nature contain graphic images of death and injury. As files are often audited internally or externally by staff who may be unfamiliar with such claims, correspondents are encouraged to provide a warning on such reports stating that the report contains images which some people may find upsetting.
A) TIME EXTENSION
A P O I N T M E N I  O F
(SERVICE
B) CLAIMS SETTLEMENT
CLAIMS HANDLING
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C) COURT PROCEEDINGS -
ARBITRATION – MEDIATION
No time extension is to be granted to any party without prior authority from the Club or the Member. Ideally the correspondent should obtain approval from the Club before any service provider is appointed. Where prior approval cannot be obtained, the correspondent may appoint the service provider to avoid delay but the Club must be notified at the earliest opportunity. The best service provider suitable for the task must be appointed, provided they are not conflicted, regardless of whether they are in-house or independent. Correspondents should not enter into settlement negotiations or agree to any settlement proposal without prior authority. An agreed settlement must include a receipt and release document, approved by the Club in advance, and the cancellation and return of any guarantee. If the Member no longer exists, they will be unable to pay claims. Other than in death and personal injury matters, if no guarantee has been issued it is unlikely the Club will be able to assist further and the correspondent may be asked to close their file and submit a final invoice. If the Club sends an expert to attend, the correspondent should provide them with any assistance necessary, including promoting co- ordination with any attending local service providers. Claims may be pursued locally or in another country because of contractual terms or by agreement between the parties. If a correspondent receives claims documents, they should seek instructions from the Club. The Club or Member may wish to handle the claim; alternatively, the correspondent may be authorised to handle the claim. If so, the correspondent should provide as s oon as possible their opinion on the merits of the claim and best estimate of the overall claim and fee exposure. The best estimate should be periodically updated to assist the Club in setting a reserve. If a claimant starts legal proceedings, the Club should be advised immediately. No claim is to be taken to court, arbitration or mediation without prior instructions from the Club and Member.の
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G U A R A N T E E S
The correspondent should inform the Club immediately if they receive a request for security and/or a threat of arrest or detention of the ship or another asset. In order to consider whether it is appropriate for the Club to provide security, the Club must be informed as s oon as possible of the name of the beneficiary and the quantum and form of security requested. The provision of Club security is discretionary and depends on a number of factors, regardless of the guarantee amount or pressure from interested parties. The security may be provided directly to the claimant by the Club or, by agreement, via the correspondent. A correspondent must not agree to issue a letter of undertaking (LoU), or other form of security, without the prior approval of the Club. A Club will not authorise a guarantee to a sanctioned entity. The following forms of security may be considered in order of preference: 1. LoU. Clubs recognise that this is not an option for all claimants in certain jurisdictions.
Clubs do not provide anticipatory security or security for an unlimited amount. Club security only covers a Member’s legal liability and will be for a quantified claim amount, which should be referred to in the terms of the guarantee. It is preferable that the amount of the guarantee includes interest and costs.
FREIGHT, DEMURRAGE
& DEFENCE COVER (FD&D)
Clubs offer a separate cover for their Members’ legal costs in defending or prosecuting certain types of claims. The involvement of the correspondent in FD&D matters will vary, and will often be minimal, as legal input is often necessary. The correspondent, whether legal or commercial, should determine the extent of Club cover and should not assume that any fees will be paid directly by the Club.
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C ONTINGENCY PLANNING
The correspondent's contingency plans should include a business continuity plan and a plan for handling large claims and major casualties. Their staff must be familiar with these plans and their roles within them. Plans and operational arrangements should be regularly tested and updated. A
B) PAYMENT INSTRUCTIONS
INVOICING
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C) INTERIM INVOICES
D) FINAL INVOICES
A) INVOICING INSTRUCTIONS
E) INVOICE ENQUIRIES
Clubs prefer to make electronic payments for invoices. The beneficiary of the payment must match the person or company issuing the invoice. Correspondents should be familiar with the invoicing requirements of each Club. Some Clubs use the “Feesable”” system which enables correspondents and third party suppliers to use a universal invoice format. To assist in controlling costs, interim invoices (including those of service providers) should be submitted unless the Club decides otherwise. In case of doubt, a correspondent may seek clarification from the Club as to who will be responsible for fees. For a Member’s own surveys, or matters not covered by Clubs, it is the correspondents’ responsibility to make arrangements for the payment of fees and disbursements. In these circumstances, the correspondent may request a payment in advance from the Member. Procedures for the submission of final invoices will vary from Club to Club. A final invoice, clearly marked as s such and including any outstanding service providers’ costs, should be submitted as soon as a case has been concluded or when the involvement of the correspondent is no longer required, normally within three months unless the Club specifies otherwise. Correspondents should check with the Club who the invoice should be addressed to. Invoices should contain the Club’s and the correspondents’ references, together with the beneficiary's banking details. Occasionally, clarification of invoices or items contained in them may be required. For invoices to be paid by Clubs, in the event of a dispute between the Club and the correspondent, the Club will settle the undisputed portion of the invoice as quickly as possible. Fees and disbursements must be shown separately. The fee calculation should show the hourly or daily rates and the time spent. Receipts or other evidence should be provided for disbursements. Correspondents should not settle any third party’s invoice without the authority of the Club. ó www.igfeesable.net A
R EFERENCES
PROVISION OF GENERA
M ATTERS
P & I Q
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The International Group of P&I Clubs www.igpandi.org Correspondents are encouraged to advise Clubs of general information relevant to ships trading within their local area. Clubs may wish to include this information in their websites, apps and publications for the benefit of their Members. UK Bribery Act 2010 www.legislation.gov.uk/ukpga/2010/23/contents Criminal Finances Act 2017 www.legislation.gov.uk/ukpga/2017/22/contents/ enacted United States Foreign Corrupt Practices Act 1977 www.justice.gov/criminal/fraud/fcpa/docs/fcpa- english.pdf Clubs appreciate those correspondents investing in training via the P&IQ course and the Clubs continue to recommend this course to correspondents. UK Proceeds of Crime Act 2002 (POCA) www.legislation.gov.uk/ukpga/2002/29/contents P&IQ Modules - The International Group of P&I Clubs www.igpandi.org/pandiq-modules UK Data Protection Act 2018 www.legislation.gov.uk/ukpga/2018/12/contents/ enacted GDPR (EU General Data Protections Regulation) www.eur-lex.europa.eu/eli/reg/2016/679/oj UK Modern Slavery Act 2015 www.legislation.gov.uk/ukpga/2015/30/contents/ enacted Feesable billing system www.igfeesable.net COLLECTIVELY STRONGER For more information about the International Group, please visit our website at igpandi.org or contact the International Group Secretariat: International Group of P&I Clubs 78/79 Leadenhall Street, London, EC3A 3DH, UK Tel: +44 (0)20 7929 3544 email: secretariat@internationalgroup.org.uk igpandi.org The International Group Clubs UKF SHIPOWNERS d, sKULD