The International Association of Independent Tanker Owners (Intertanko) warned members to offer no guarantees when insuring their operations against Year 2000 software problems.
Intertanko said that owners have to exercise due diligence to keep their vessels seaworthy and be in every respect fitted for the voyage, and that this obligation includes ensuring that all computer-based operations are Y2K- compliant.
"No one can state confidently that their operation is 100% Y2K-compliant," Intertanko advised members, "yet there are (insurance) clauses that require owners to warrant or guarantee compliance as opposed to exercising due diligence or taking reasonable steps to ensure compliance.
"Since the Y2K problem affects both vessels and shore facilities alike, it is not unreasonable for a clause to include obligations on both sides to therefore ensure that the clause is balanced.
"For some time now, Intertanko has supported the use of the BIMCO Y2K clause, which requires both owners and charterers to exercise due diligence in ensuring Year 2000 conformity."
Intertanko said this approach is supported by the International Group of P&I Clubs, through which maritime operations are insured.
Where owners agree to guarantee full Y2K compliance, said the association, they run the risk of incurring very substantial liabilities even though they may have exercised due diligence to ensure Y2K compliance.
