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Market introduces new Lloyd's open form default clause


Market introduces new Lloyd's open form default clause

During the launch, a panel consisting of representatives from Lloyd's, P&I (protection and indemnity) clubs, claims adjusters, underwriters, ICS, and the Secretary of State's Representative for Maritime Salvage and Intervention outlined the benefits of the clause and the changes made during its drafting process.

The LMA and ICS have structured the clause with specific goals in mind: to affirm that, in emergencies, shipowners or captains can instantly utilise LOF to arrange salvage services; to provide clear procedures for handling situations where immediate danger is not present; and to define a process where shipowners notify hull underwriters and consult them on the most appropriate contract, whether LOF or another option, based on the circumstances.

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