London, 15 February 2024: The Lloyd’s Market Association (LMA) has published revised clauses in response to the Oil Price Cap Coalition’s announcement of additional measures to reduce the possibility of circumvention of the oil price cap.
The release of updated hull and cargo endorsement and attestation clauses, LMA5610A and LMA5611A, are intended to be used on in-force and any new policies entered into after 19 February 2024 by underwriters subject to the requirements.
The clauses are primarily amended to take account of the new requirements on underwriters to obtain per voyage attestations and introduce an appropriate mechanism to request that their insured provides information on ancillary costs paid under any contract related to shipment of Russian oil or oil products.
Reinsurers are not required to introduce these provisions, but should continue to use an appropriate sanctions clause. LMA3100, LMA3100A or LMA3200 are examples of sanctions clauses referred to by HM Treasury in their draft guidance.
Arabella Ramage, Legal Director at the LMA, said: “These updates are designed to help insurers to respond to the new requirements in a compliant manner taking into account the guidance issued by the regulatory authorities in the Oil Price Cap Coalition. The LMA remains committed to assisting insurers to respond to requirements in an increasingly complex regulatory landscape.”
