Lloyd’s insurers warn Hormuz transit payments could void vessel coverage

 

Lloyd’s Market Association (LMA) has issued new guidance warning that vessels making transit payments to pass through the Strait of Hormuz could lose insurance coverage if the payments raise sanctions or terrorism-law concerns.

The LMA said its new model clause for marine hull insurers applies where payments, including financial or non-financial arrangements, are made to enable vessels to pass through Iranian territorial waters or otherwise transit the Strait of Hormuz.

It said insurers would not cover such payments and that vessel coverage could cease if the payments create risks under US, UK or EU sanctions and terrorism legislation.

https://www.iranintl.com/en/liveblog/202607245785