But the club is balancing the increase by deciding to forgive a further 2.5% of the deferred call for the year to February 2015.
There had already been a decision to waive 5% of the deferred call, so a total of 7.5% or $13m of premium will not be collected on the last policy year, lifting the total waived over recent years to $44m.
The ‘A’ rated Britannia Club is one of the financially strongest of the P&I clubs, with a free reserve of $546m, following a surplus of $74m rang up by the club along with its linked Boudicca reinsurance company last year.
The 2.5% increase is to the advance call for P&I cover and keeps the general increase moving up at this steady rate for the third year running.
No increase is being charged for freight, demurrage and defence cover continuing a strategy that has kept rates stable for five out of the last six years.
“Supporting members is the core objective of any P&I club,” declared the Britannia Club chairman, former BP executive, Nigel Palmer. “These mutual steps are possible because of the association’s continuing financial strength.”
The Britannia Club reports that claims have “encouragingly” returned to normal after heavy years in 2012/13 and 2013/14.
But the club says investment returns have been disappointing as a result of volatility in equity and bond markets.
