International Marine Claims Conference 29.9 – 1.10.2004. The handling of Hull & Machinery claims in the London market Philip Cornick. Head of Claims, London Market Division, Brit Syndicates Limited - Syndicate 2987 at Lloyd’s and Brit Insurance Limited.
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The handling of Hull & Machinery claims in the London market
Head of Claims, London Market Division,
Brit Syndicates Limited - Syndicate 2987 at Lloyd’s and
Brit Insurance Limited.
Chairman of the Lloyd’s Market Association
Marine Claims Committee.
Most business is written on a subscription basis through the broker network
Claims are usually handled by the leading Lloyd’s syndicate and company insurer(s)
Following insurers delegate their responsibility
Lloyd’s syndicates delegate to Xchanging Claims Services (‘XCS’) – formerly the Lloyd’s Claims Office (‘LCO’) under the terms of the Lloyd’s 1999 Claims Scheme
IUA company insurers delegate to the leading IUA company insurer (sometimes the two leading IUA company insurers)
The non-affiliated companies usually agree their own claims
A small number of organisations within the London market take a different approach to claims handling
This is the usual way in which claims are advised to the leading insurer in London
It is unusual for claims to be advised by the assured/owner unless stipulated in the slip/policy
Claims are occasionally advised by the assured’s appointed Average Adjuster or lawyer
The main contact for all of the parties involved in the claim is the broker
The broker has historically been available outside of normal office hours and is usually able to handle the majority of issues which may arise when the leading insurer is unavailable
Most claims adjusters and brokers are now contactable by mobile phone
Alternative route is occasionally available via the placing broker to the leading insurer
If the leading insurer cannot be contacted, most London brokers would react accordingly, e.g. if a surveyor is urgently required, the broker will usually contact the Salvage Association
6. factor as the Salvage Association is able to respond in most major shipping areasAre Terms of Engagement and/or ServiceLevel Agreements used for such appointments? If so, are they issued by insurers or by the surveyor?
10. factor as the Salvage Association is able to respond in most major shipping areasAre Terms of Engagement and/or ServiceLevel Agreements used for such appointments? If so, are they issued by insurers or by the lawyer/attorney/expert?
13. factor as the Salvage Association is able to respond in most major shipping areasWhat communication (if any) is there between insurers and the Average Adjuster prior to issue of the final adjustment or of any request for payment on account?
The broker plays a fundamental role in the claims process in the London market.
He is responsible for:
advising the leading insurers of the claim;
maintaining the claims file and updating insurers;
obtaining agreement from the leading insurers to settlement of the claim;
collection of the funds from all insurers;
payment to the assured.
The broker is also the point of contact for all parties and the conduit for all queries
Yes. All Lloyd’s syndicates, IUA companies and many of the non-affiliated companies use Xchanging Ins-sure Services (‘XIS’) – a merger of the former Lloyd’s Policy Signing Office (‘LPSO’) and the London Processing Centre (‘LPC’)
Accounts on a daily basis to all brokers
Other London insurers settle their claims directly with the broker
The broker then forwards all monies received to the assured
20. (counter) guarantees in salvage and collision cases?Is there any protocol in operation in your market that governs the handling of claims?If so, please provide brief details, e.g. timescales, penalties etc.
No. There are a number of existing practices and developing initiatives as follow: