’The LMA remains committed to assisting insurers in responding to requirements in an increasingly complex regulatory landscape,’ says legal director
The Lloyd’s Market Association (LMA) has published its revised oil price cap clauses for hull and cargo.
Known as known as LMA5610A and LMA5611A, the updated clauses are intended to be used on any new policies entered into after 19 February 2024.
They have been amended to take account of the new requirements on underwriters, which was introduced by the Oil Price Cap Coalition.
This includes obtaining attestations per voyage and introducing an appropriate mechanism to request that their insured provides information on ancillary costs paid under any contract related to the shipment of Russian oil or oil products.
Reinsurers are not required to introduce these provisions, but should continue to use an appropriate sanctions clause, the LMA said.
Oil Price Cap
The Oil Price Cap Coalition’s additional measures aim to reduce the possibility of circumvention of the oil price cap.
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Arabella Ramage, legal director at the LMA, explained that the “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 in responding to requirements in an increasingly complex regulatory landscape,” she added.
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