Standard LMA Aviation Terms of Engagement for surveyors/loss adjusters
The LMA Aviation Claims Group (ACG) has produced an LMA Aviation Terms of Engagement (LATOE 2015) for the Lloyd’s Aviation Market. The group agreed that it would be helpful for the market in terms of consistency and clarity.
After reviewing many of the market's current terms of engagement, the following document has been developed and endorsed by the ACG:
Standard LMA Aviation Terms of Engagement for surveyors/loss adjusters
Should Lloyd’s managing agents wish to use the LATOE 2015, they should make it clear upon instructing the surveyor/adjuster that their instructions are given in accordance with, and on the terms of, LATOE 2015. Suggested language would be: ‘These instructions are given in accordance with, and on the terms of, LATOE 2015’
Where managing agents are instructing surveyors/adjusters on behalf of reinsuring syndicates under a claims control clause, managing agents may do so on the basis of LATOE 2015 by providing that Instructing Insurers (as defined in LATOE 2015) be read as “Instructing Reinsurers” with consequential changes.
Where London companies also subscribe to the aviation insurance or reinsurance contract, LATOE 2015 may also be used as the basis of instructing surveyors/adjusters, but in this case the company market participants would need to amend their LATOE 2015 to reflect the leader/follower/claims agreement party arrangements for the company participation on the MRC slip in question (with further consequential changes as necessary).
It is expected that the use of LATOE 2015 will provide the Lloyd’s market with a more consistent and transparent service and at the same time offer adjusting firms the simplicity and clarity of working under standard terms of engagement.
LATOE 2015 has been devised and distributed for the “guidance” of managing agents who may agree different terms as they see fit.
If you have any questions or would like any further information, please contact Ruth Cameron-Errington: ruth.cameron-errington@lmalloyds.com.
Ruth Cameron-Errington
Senior Executive, Claims
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