History of Syban
In Belgium, the setting-up of the Nuclear Energy Study Centre (CEN) at Mol, of which the first research reactor became critical on 11th May 1956, confronted the insurers with the practical problem of the insurance of nuclear risks. And so, on 16th November 1956, a general meeting of the insurance companies operating in Belgium was held at the Belgian Insurance Companies' Association (UPEA) with the object of studying the possibility of the effective cover of these risks.
Draft Statutes were submitted to the companies concerned on 24th May 1957. These Statutes were adopted on 23rd July 1957 at a meeting of these companies and the "Belgian Syndicate for the insurance and reinsurance of nuclear risks" was officially set up on this date : 56 companies joined it immediately and 46 others agreed in principle, subject to later confirmation.
On 5th August 1959, an assembly of members approved the new Statutes of the Belgian nuclear insurance Pool, of which the initials " SYBAN " are known throughout the world. These Statutes, which came into force on 1st September 1959, still control the activities of SYBAN, subject to some slight amendments made to certain articles in 1965, 1968, 1981, 1982 and 1996. At the beginning of the year 2000, the General assembly approved the internal regulations concerning the handling of a major nuclear loss.
Please find hereafter an overview of the main articles of
SYBAN's Statutes :
Article 1
The object of the present Agreement is, by the establishment of a Syndicate of co-insurers, to organize the underwriting by the co-insurers of insurance and reinsurance of risks of a nuclear nature for Material Damage, Third Party Liability, Occupational and non-occupational Accident relating to installations where criticality is likely to be reached or which present serious risks of radioactive contamination (see current list in appendix).
Article 3
Adherence to the present Agreement is restricted to the insurance or reinsurance companies of the European Union and, for companies situated out of the European Union, to their registered offices of operations in the European Union or to their Belgian agencies authorised to underwrite.
Article 6
The Members undertake not to cede by way of reinsurance the whole or any part of the shares in the risks they have accepted on a net-line basis in the insurance contracts concluded by the Syndicate.
Article 7
Assessment of net-line retentions.
Members may subscribe to all or only some of the insurance classes determined by the Management Committee.
When requested by the Management Committee, Members shall advise the insurance classes in which they have decided to participate, as well as, in each of these classes, the maximum net-line capacity they are prepared to hold in self-retention on each risk situated in Belgium and abroad.
As circumstances may require, the Management Committee shall request the Members to participate in foreign risks either in the aggregate and without distinction of country, or per country or group of countries.
In each insurance class, a Member may reduce the maximum net-line retention accepted, with effect from the end of the current financial year, subject to notification given to the Management Committee prior to the 30th June of every year.
Before the end of each financial year, Members shall advise the Management Committee of the increased capacity they are willing to underwrite.
Each maximum net-line retention by a Member must be a whole multiple of € 25 000.
The Membership Committee may at any time reduce or cancel the maximum capacities underwritten by the Members in one or more insurance classes.
The sum of the maximum net-line capacities accepted per insurance class constitutes the Syndicate's total own net retention for this class.
In each insurance class, the ratio of the maximum net-line capacity accepted by a Member to the Syndicate's total own retention shall determine the share of that Member in every risk subscribed by the Syndicate during the whole duration of the financial year.
Article 8
Insurance of risks situated in Belgium.
1. Risks coverable by way of co-insurance.
Subject to technical considerations, the Management Committee will provide cover up to the total own retention of the Syndicate as defined under Article 7, preferably by means of co-insurance.
Above this amount, the Management Committee will cede, for the common account of the Members concerned, the requisite excess of cover in co-insurance and/or reinsurance to other foreign Nuclear Insurance Pools, and possibly, to other Belgian or foreign insurance concerns.
However, the excess of cover the Management Committee is authorised to cede in reinsurance to foreign Nuclear Insurance Pools cannot exceed thirty-nine times the Syndicate's total own retention as defined under Article 7.
This share may only be attained if the Members of each of those Pools will be jointly liable or if, collectively, they will answer for the commitments of a bankrupt member, or further, when a Pool submits guarantees the Management Committee considers as sufficiently effective.
2. Risks not coverable by way of co-insurance.
As regards these risks - such as Workmen's Compensation - the Management Committee may conclude, for the common account of the Members concerned, reinsurance treaties with the direct insurer whether a Member or not, it being understood that the Management Committee is obliged to retrocede, for the common account of the Members concerned, any share which exceeds the Syndicate's total own retention.
Such retrocession is to be effected with foreign Nuclear Insurance Pools and, possibly, with other Belgian or foreign insurance concerns.
The reinsurance transactions effected for common account by the Management Committee according to the present Agreement are binding on the Members.
Article 9
Insurance of risks situated abroad.
As regards risks situated abroad, the Management Committee may conclude, for the common account of the Members, insurance contracts and reinsurance treaties up to the Syndicate's total own retention as defined under Article 7.
When the Syndicate is requested to cover risks located in foreign countries for amounts exceeding its total own retention, the Management Committee may propose that each Member increases his own participation.
Article 10
Bankruptcy or default of an adherent.
In case of bankruptcy or default by one of the Members, and insofar as his participation is not taken over by one or more other Members so authorised by the Management Committee, the obligations of the bankrupt Member resulting from the direct insurance or reinsurance agreements concluded by the Syndicate are assumed by the other Members, who declare themselves a guarantee in proportion to the net-line capacities they have accepted in the said agreements.
It is specified that a Member is in default in the context of the present provisions if he fails to meet a cash call demanded by the Management Committee within two months of receipt of formal notice by registered letter.
The Management Committee is entitled to proceed against the defaulting Member or against its Liquidator or Receiver, in order to recover payments effected by the other Members in pursuance of this article and to provide for the distribution of the recovered sums proportionally amongst the said Members.
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