PRESS RELEASE
10 June 2024
LMA consolidates changes to marine hull and cargo oil price cap clauses in response to series of sanctions changes
London, 10 June 2024: The Lloyd’s Market Association (LMA) has issued a revision to the market’s hull and cargo oil price cap wordings. The overhaul creates simplified clauses reflecting the changes to the oil price cap mechanism that have occurred since the original instrument was put in place.
Arabella Ramage, Legal Director of the Lloyd’s Market Association, noted: “After a number of recent changes to legislation by the global Price Cap Coalition (the sanctions coalition made up of the G7, the European Union and Australia), notably the decision to require ‘per voyage’ attestations on adherence to the price cap, and the inclusion of ancillary costs in the pricing formula, the LMA has decided to revise the hull and cargo clauses. We have also taken the opportunity to remove the introductory wording which was in the clauses when the concept was new and needed explaining to insureds when it was being introduced to existing contracts”.
“The new model wordings (LMA5650 and LMA5651) will be posted to the Lloyd’s repository and all previous versions of the hull and cargo clauses removed for clarity.
While it is recommended that previous versions should not be used in new contracts to ensure all the changes have been properly taken into account, no changes are needed to existing contracts where previous versions have been used.”
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Notes to Editors
Media relations contacts
LMA:
Carole Porter, Head of Communications | +44 020 3307 3947 | Email: carole.porter@lmalloyds.com
Omnia Partners:
Victoria Sisson, Director | +44 794 129 4872 | Email: victoria.sisson@weareomniapartners.com
About the Lloyd’s Market Association (LMA)
The Lloyd's Market Association (LMA) exists at the very heart of Lloyd's, a world-leading global marketplace for complex risk where solutions to challenges are delivered every day. All 55 Lloyd's managing agencies, with a total market stamp capacity of approximately £52.6bn in 2024, and all Lloyd's members' agents, are members of the LMA.
We represent our members' interests to organisations including governments, regulators, and the market's central supporting body, the Corporation of Lloyd's. We provide professional and technical expertise in areas ranging from model policy wordings to the implementation of innovative technologies. We connect with our members to identify and resolve issues facing the market, and work in partnership with Lloyd's and the other market associations to influence initiatives and outcomes. We operate the market's most comprehensive technical education service, the LMA Academy. For more information visit: www.lmalloyds.com.