Lloyd's Market Association Bulletin

LMA16-048-RCE  |  05 December 2016
           

Individual Claim Threshold Change for Bordereaux Claims

Over recent months a review of the current thresholds for splitting out bordereaux claims has been completed by the Binding Authority Claims Group (BACG). The current threshold is set at £100k/$200k or equivalent. Following the review, it has been determined that the threshold should be increased to align with the 2010 Lloyd’s Claims Scheme thresholds.

The XRB (Xchanging Review Board) have reviewed and approved the change.

The new thresholds will therefore be:

  • GBP - £250,000
  • USD - $350,000
  • CAD - $450,000
  • EUR – €300,000
  • AUD – $450,000.

This change will apply to all new claims and claims movements resulting in a split from the bordereaux when the thresholds listed above are breached. This will effect all presentations submitted to Xchanging from 01 January 2017. 

Important points to note:

  • the change applies to claims regardless of the binder year inception
  • the change is not retroactive, i.e. existing claims split out as per the previous threshold will remain so for the life of the claim, regardless of any subsequent movements.
  • as per current practice, leaders may continue to specify other thresholds for splitting out individual entries as may be required on individual contracts.

If you have any questions, please contact Ruth Cameron-Errington: ruth.cameron-errington@lmalloyds.com / 020 7327 8410.

Ruth Cameron-Errington
Senior Executive, Claims