The articles of Association sets out the business objective and describes the governing structure of Norwegian Hull Club
The Club’s capital adequacy is strong and at its meeting on 14th March, the Board of Directors evaluated the preliminary accounts for 2016 and resolved to propose that 5 % of mutual premium earned in the 2016 calendar year be returned to the members of Norwegian Hull Club. We recognize the members´ continued support of the Club´s operation and through this return in premium underline the Club´s commitment to stay with our members through the shipping and marine insurance cycles, whilst reinforcing our value proposition and long term partnerships.
The return of premium proposal will be presented to the Committee and finally decided at the Annual General Meeting on 13th June, when the annual accounts are officially adopted.
If you have any questions regarding the return premium, contact your designated underwriter or look into the questions and answers listed below.
Q: Which article in the Articles of Association is the basis for decision on and calculation of return premium?
A: Return premium is regulated by § 3-2 of the Articles of Association, stating
“If the total premiums and other income of the Club are found to be in excess of that required to cover the claims and costs of the calendar year, the Club may decide that the surplus, wholly or in part, shall be repaid to the members in the calendar year in question by way of a pro rata discount to be stipulated in proportion to the net advance premiums for that calendar year.
It is not permissible to declare higher return premium than proposed or accepted by the Board of Directors.
Repayment to Joint Members is to be sent to the member named first in the insurance agreement.”
Q: For which period is the return premium earned?
A: Return premium is based on mutual premium earned by NHC during the 2016 calendar year, see § 3-2 referred to under the first question. This premium can relate to both 2015 and 2016 underwriting years.
Q: To whom shall return premium be paid?
A: Return premium shall be paid to the member, See § 3-2. In case of Joint Members, return premium is paid to the members named first.
Q: Will return premium impact commission to brokers?
Q: Will a former member who was member for a part of the calendar year be entitled to return premium?
A: Yes, see § 3-2.
Q: Will return premium impact Profit Commission, No Claims Bonus and similar adjustments?
A: No, the return premium is based on updated figures as per 31.12.2016.
Q: Is estimated but not reported premium on war covers included in the basis for return premium?
A: No, only calls declared and premium calculated thereon form the basis for return premium.
Q: When will repayment of premium be made?
A: Shortly after the Annual General Meeting, to be held on 13th June.
30. Mar. 2017