The Joint Power Generation Committee has agreed some minor updates to LMA5621 (Nuclear Energy Risks Exclusion), following a query from the market about whether the contractual definition of Nuclear Materials in the clause might clash with statutory definitions in some jurisdictions.

Changes have been made to clarify precedence:

1. Local law definitions of Nuclear Materials will prevail, provided they are equal to, or broader, than the contractual definitions.
2. Where local law definitions omit, or are narrower than, contractual definitions, the contract will prevail.

The changes have been drafted to be effective in any jurisdiction. Some other superficial changes have been made to improve readability etc.

The new “A” version is intended as a direct replacement for LMA5621 which will be archived shortly.

All LMA model clauses are purely illustrative and are published and distributed for the guidance of Lloyd’s managing agents, brokers and other market participants. All contracting parties are free to agree to different conditions/amend the model clauses as they see fit; the LMA does not protect its intellectual property rights over model clauses. It is for underwriters to decide whether or not any contractual language is acceptable on any given risk. Model documents are available on the Lloyd’s Wordings Repository (LWR).

David Powell
Head of Technical Underwriting
david.powell@lmalloyds.com 

Tracey Cookson
Senior Executive, Technical Underwriting
tracey.cookson@lmalloyds.com