Iran Economy NewsLloyd's ship underwriters create sanctions clause

Lloyd’s ship underwriters create sanctions clause


Reuters: London’s marine insurance market has created a clause ensuring underwriters do not breach sanctions due in part to western measures against Iran, a senior Lloyd’s Market Association (LMA) official said on Monday.

By Jonathan Saul

LONDON (Reuters) – London’s marine insurance market has created a clause ensuring underwriters do not breach sanctions due in part to western measures against Iran, a senior Lloyd’s Market Association (LMA) official said on Monday.

Marine underwriters in London have been looking at ways to deal with the growing raft of Iran-related measures as well a U.S. executive order on a Somali group.

“Underwriters have taken steps to ensure they do not contravene the sanctions. One of the ways of doing that is to write carefully the allowed business using an appropriate exclusion or limitation clause,” Neil Roberts, a senior technical executive with the LMA, told Reuters.

“They have put together a clause with U.S. legal thinking which is now available for use.”

President Barack Obama in April issued an executive order blocking the U.S. assets of an Islamic Somali insurgent group that professes loyalty to al Qaeda, and 11 individuals he linked to conflict and piracy in the anarchic country.

“The clause is designed to address most things, not just Iran and Somalia although they have been extensively discussed,” Roberts said.

“This is designed to try and address any sanction prohibition or restrictions which will come out under U.N. resolutions or trade and economic sanctions from the EU, UK or the U.S.”

The London marine insurance market plays an influential role in the global marine insurance industry. The LMA represents the interests of all underwriting businesses in the Lloyd’s market.

“They are mindful of the proliferation of sanctions together with their extra territorial effect,” Roberts said.


In a blow to Iran, which depends on its seaborne trade, insurance market Lloyd’s of London said in July it would not insure or reinsure Iranian petroleum shipments.

“The market has been working on the commercial aspect of how that should be implemented,” Roberts said in an interview.

“This is a practical answer from the market and sits alongside the Lloyd’s instruction to managing agencies which directed them to be aware of the situation and take steps to comply.”

The West suspects Iran’s nuclear work is aimed at bomb-making but Tehran says it is for peaceful purposes. Wide ranging U.S. and European Union sanctions last month have aimed to squeeze Iran’s refined petroleum imports and increase its international isolation.

Roberts said the consequences for underwriters would vary but added that due diligence needed to be demonstrated.

“It is helpful to have evidence that you have included a clause that says there are instances where we cannot provide cover, and there are instances where we cannot pay claims because of circumstances beyond our control,” he said.

Roberts said hull underwriters had led on the initiative to create a clause.

“Whilst it was designed by those on the shipping side, it could be applied by anybody should they choose whether marine or non marine,” he said.

Latest news

Iran’s Strategy: Moving on the Edge of the Abyss

Iran’s supreme leader Ali Khamenei and his government's officials in the 'young Hezbollahi government' on the eve of the...

Iran Likely To Face Further Oppression Following Cancellation of UNESCO 2030 Guidelines.

The secretary of the Supreme Council of Cultural Revolution (SCCR), Saeed Reza Ameli announced on Monday, September 13, that...

Suicide Has Become Ordinary in Iran’s Society

Suicide is a function of a series of economic, social, political, and cultural issues in society. In Iran, everyone...

Iranian Government Impunity Overshadowed by Failed Nuclear Deal Negotiations

Regarding Iran’s nuclear deal, formerly known as the Joint Comprehensive Plan of Action (JCPOA), the Iranian policymakers have stated...

Iran: The Alarming Livelihood Basket of the People

Compared to previous years, the Iranian government is looting the population more, at higher levels, and in new ways....

The IRGC’s ‘Gold Mafia’ Is One of the Causes of the Economic Crisis in Iran

Iran is currently undergoing its worst economic period at the hands of the Iranian regime. The cause is widely...

Must read

Crashed Iran plane ‘hit runway too fast’

AFP: An Iranian airliner which overshot the runway and...

Iran: Officials Murder Baluch Fuel Porters and Protesters in Saravan

On February 22, IRGC forces opened fire on a...

You might also likeRELATED
Recommended to you