Circular No. 16/98 - The Millennium Bug
SEPTEMBER 17, 1998
CIRCULAR NO. 16/98
TO MEMBERS OF THE ASSOCIATION
THE MILLENNIUM BUG
Reference is made to Circular No. 8/98 of March 26, 1998 issued by all Clubs in the International Group. This is attached for ready reference and it is requested that Members read it again.
Through this Circular, and the Millennium Conferences which the International Group organized in June (see Circular No. 10/98 of April 28, 1998), the Clubs have tried to alert Members to the scale of the problem. Only Members themselves, however, can take action to resolve their own problems and take appropriate steps according to published best practice, invoking independent expert advice when required.
So far as cover is concerned, your Board of Directors recently approved a Rule change addressing the way in which millennium-related claims will be assessed with effect from February 20, 1999. As from that date a new Section 21 will be added to Rule 1, as follows:
It is expected that all Clubs in the International Group will handle the issue of cover for claims arising from millennium non-compliance in a similar way.
Members are urged to take careful note of these matters and to act prudently, failing which cover may be prejudiced.
Joseph E.M. Hughes, Chairman & CEO