Regarding the term “reduced degree of hazard”, the following
interpretation shall be applied in accordance with Regulation 6.2.4 of
the above mentioned Resolution MSC.281(85)- “A lesser value of N, but in no
case less than N = N1 + N2, may be allowed at the
discretion of the Administration for passenger ships, which, in the
course of their voyages, do not proceed more than 20 miles from the
nearest land.”