The non-liability posi on accepted by P&I clubs in their insurance policy coverage under the influence
of the worldwide sanc ons imposed on Russia has pushed Turkey to search for protec ve and valid
remedies for security against the Insurers.

To overcome the emerging problem of the vessels being le out of the P&I coverage, during their
voyage in Turkish territorial waters and passage through the Turkish Straits, due to the poten al
illegal commercial ac vity they may be involved in, Turkish Authori es have issued new regula ons.
The General Directorate of Mari me Affairs under the Ministry of Transport And Infrastructure issued
another le er on 02.02.2023 with the number E-19463099-199-957879, having referenced their
16.11.2022 dated and E-779495 numbered le er, re-emphasized the s pula ons referred in Ar cle
13 of the Implemen ng Direc ve of the Regula on on Mari me Traffic Scheme in the Turkish Straits
that all ships carrying dangerous cargo, ships of 300 GT and above and towing vessels shall hold a
valid P&I policy. The Ministry of Transport And Infrastructure s pulated that the most cost-effec ve
and reasonable remedy to comply with the regula on is to get an addi onal confirma on le er
stating that the vessels would be covered under valid P&I insurance during the related voyage.

I. The Scope Of The Letter

As it is known, Article 13 of the Implementing Directive of the Regulation on Marittime Traffic Scheme
in the Turkish Straits rules that all vessels carrying dangerous cargo, ships of 300 GT and above, and
towing vessels shall hold a valid P&I policy, in considera on of poten al issues and claims that can be
faced with during the respec ve voyages. However, as of their recent statements, many P&I
insurance providers clearly expressed their posi on of non-liability if “any illegal commercial ac vity
or viola on of prohibi ons or other similar circumstances take place prior to a loss that would incur
liability”. Therefore, even if the vessel holds a valid P&I policy, the damages shall not be indemnified
in such circumstances. Even if these rules refer to the printed texts included in insurance codes and
policies which are generally known, these should be respected as warning remarks for further
measures to remind the shipowners concerning the current developments.
The General Directorate of Mari me Affairs states that since the Turkish territorial waters, in respect
of mari me trade, cons tute a highly dynamic industry involving more than 100,000 vessels, the
majority of which take place on an interna onal scale, it does not seem possible to monitor whether
any vessel has commi ed any prohibited or illegal act before sailing into Turkish territorial waters.
However, it is necessary to confirm that the P&I insurances of loaded vessels carrying cargoes such as
oil and petroleum products, which are likely to bring forth catastrophic consequences to Turkey in the
event of a possible accident, are s ll valid and comprehensive during their passage through the
Turkish Straits. Otherwise, in case of the absence of P&I coverage a er a poten al accident, or refusal
of the insurance provider for the reasons above, or in case of a me-consuming process and delay in
the necessary ac ons, Turkey will suffer in many respects. If the Straits, as significant waterways,
remain closed during this process, the supply chain and logis cs mobility would come to a stands ll,
and a global crisis may break out. Consequently, The General Directorate of Mari me Affairs
considered that ge ng an addi onal confirma on le er sta ng that the vessel would be covered
under valid P&I insurance during such a voyage would be the most worthwhile and proper remedy.

II. Conclusion

In conclusion, The General Directorate of Mari me Affairs advises the Shipowners/Managers to
acquire a le er from the P&I Insurance providers sta ng that;

– the details of the vessel, which carries petroleum products included in Annex-1, Release 1 of the
Interna onal Conven on for the Preven on of Pollu on of the Seas by Ships (MARPOL) and that
would pass through the Turkish Straits loaded as of 06.02.2023,

– their cargo and sailing,

– the P&I insurance would be valid and comprehensive for this vessel, voyage, and cargo.

This le er shall be appended to the Naviga on Plan-1 (SP-1) report to be submi ed by the vessel
from these insurance providers or their agents and to be sent to the e-mail
address istcan.gth@kiyiemniye .gov.tr. It is also reported that the ship agents should coordinate the
related opera ons and procedures as early as possible to prevent possible loss of me and avoid
delaying the vessel’s passage.

The content of this ar cle is intended to provide a general guide to the subject ma er. Specialist
advice should be sought about your specific circumstances.

Please contact us if you need further informa on or have any queries.