London's Joint Hull Committee (JHC) announced today that it is pushing ahead with its comprehensive plans to review the Institute Hull Clauses to bring them into line with current market practice.
The committee said that, subject to satisfactory conclusion of the consultation and approval process, the new clauses would be ready by November.
Although no far-reaching changes are anticipated, the JHC says it is keen to make the standard hull clauses as consumer-compatible as possible. It will start by reviewing the 1983 and 1995 clauses.
The JHC also said that it will look at making a number of supplementary clauses part of an addendum. This addendum could then be amended when necessary, without requiring any changes to the main wording.
JHC chairman Simon Beale commented: "This is not a fundamental rewriting of the existing standard clauses. But the wordings in current usage have been in the market for seven years and more, so it would be surprising if some
amendments were not deemed beneficial to both the shipping and insurance industries, particularly since ISM compliance has become mandatory for so many ships and owners since the most recent wordings were launched in 1995.
"Initial consultations are taking place with brokers, solicitors and average adjusters, and we have scheduled discussions for further consultation with policyholders - the shipowners and managers. It is important that insurance
wordings reflect current industry thinking and market developments, as well as legislative changes, rather than languish in the past."
The JHC, whose purpose is to support and develop the role of the London hull insurance market, is a joint initiative by the International Underwriting Association of London and Lloyd's Underwriters' Association.
