Fixed premium insurer British Marine, a subsidiary of QBE, has altered its expiring 2016 Charterers P&I terms and conditions for 2017. A new paragraph has been inserted into Section B – 17. Claims notification, which states that “unless the Insurer in its discretion decides otherwise, it is a condition precedent to the Assured’s right to recover under the Policy in respect of any liabilities, costs or expenses that he shall first have discharged or paid the same out of funds belonging to him unconditionally and not by way of a loan or otherwise.”
The reason for the change is that, after the repeal and replacement of the Third Parties (Rights Against Insurers) Act 1930 with the 2010 Act, British Marine has re-assessed the potential enhanced exposure against direct action by third parties. “As a result it has been decided to implement this paragraph on the right of recovery which we believe to be in the best interest of the Insurer and the Assured,” the insurer said.