London market to revise hull insurance clauses
ITIC’s shipmanagement Members should be aware that underwriters in the London market are in the process of revising the standard hull insurance clauses to bring them into line with current market practice. No major changes to the wording of the clauses are envisaged, and ITIC’s members’ responsibilities are not expected to be significantly altered.
Underwriters are intending to make the clauses more customer-friendly, and to update them where necessary to reflect developments that have taken place in the shipping industry since the clauses were last reviewed in 1995. Those developments, of course, include the entry into force of the International Safety Management Code. Shipmanagers’ responsibilities under ISM will not be affected by any revisions to the clauses.
The new clauses are expected to come into force on 1 November, 2002, following a consultative review by underwriters, insurance brokers, shipowners, and claims adjusters. ITIC will monitor their progress, and will keep Members informed of any relevant developments. Shipmanagement Members, meanwhile, should continue to be named as co-assureds under hull insurance policies on all insurances taken out in respect of ships under their management.