Smooth sailing ahead: The LMA's new Open Form Default Clause
23 September 2024
Earlier this month, the Lloyd’s Market Association (LMA) released a new Lloyd’s Open Form Default Clause for marine hull insurance policies to clarify procedures for the securing of emergency and non-standard tug services.
The clause, which was produced in collaboration with the International Chamber of Shipping, addresses challenges which the maritime sector faced with the Lloyd’s Open Form, including:
- ensuring it is clear that in emergency situations, ship owners and masters can use the Lloyd’s Open Form to obtain salvage services;
- laying out a clear procedure to be followed in emergency situations where there is no risk of imminent danger;
- laying out a clear procedure for the notification of insurers, and consultation with them as to the appropriate form of contract.
- communication between shipowners and underwriters, and inefficiency surrounding salvage processes.
The clause will officially be released by the LMA shortly.
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Author
Mark Hickson
Head of Business Development
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Tim Johnson
Partner
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