Lloyd's Claims Scheme
The vast majority of claims on subscription market risks fall under the 2006 or 2010 Claims Schemes which are now contained in the Lloyd's Claim Scheme (Combined). This became effective on 1 January 2012 and a copy may be found below.
The Lloyd’s Claims Scheme (Combined) was issued under Market Bulletin Y4522. On 30 March 2012 Lloyd’s issued Market Bulletin 4578 bringing into scope an additional 44 risk codes for the 2010 Claims Scheme. Additional information regarding the Lloyd’s Claims Scheme and the implementation of the 2010 Claims Scheme in particular is set out in these Market Bulletins.
Lloyd’s also issues 2010 Claims Scheme Process Guidelines to support the operation of the 2010 Claims Scheme. A copy of the most recently issued Guidelines may be found below.
2010 Claims Scheme: In-Scope Codes
The 2010 Claims Scheme applies to certain risk codes from specified effective dates, as set out in Schedule 5 to the Lloyd’s Claims Scheme (Combined). In Market Bulletin Y4522 Lloyd’s indicated its intention to expand the 2010 Claim Scheme over time to include all classes of business. Schedule 5 will therefore be periodically updated to reflect the roll-out of the 2010 Claims Scheme to all claims.
The current version of Schedule 5 is at the end of the Lloyd’s Claims Scheme (Combined) which can be downloaded below. For ease of reference a copy of Schedule 5 can also be separately downloaded below.
The most recent Market Bulletin updating Schedule 5 is Market Bulletin Y4578
Current Schedule 5 to the Lloyd’s Claims Scheme (Combined) (414KB, pdf)
Current Version of Lloyd's Claims Scheme (Combined) (716KB, pdf)
Y4601 - Claims Transformation Programme: Revised 2010 Claims Scheme Process Guidelines (196KB, pdf)
Market Bulletins Amending Schedule 5
Y4578 - Lloyd's Claims Scheme (Combined) and Expansion of Scope of 2010
Y4601 - Claims Transformation Programme: Revised 2012 Claims Scheme Process Guidelines
Correct Slip Language
Correct claims agreement provisions for the Lloyd’s market on any new slip are as follows:
“Basis of Claims Agreement:
Claims to be managed in accordance with the Lloyd’s Claims Scheme (Combined), or as amended or any successor thereto.
Claims Agreement Parties:
For Lloyd’s syndicates:
The leading Lloyd’s syndicate and, where required by the applicable Lloyd’s Claims Scheme, the second Lloyd’s syndicate and/or the Scheme Service Provider.
The second Lloyd’s Syndicate is JKL (1234).”
This language follows the guidance relating to the Market Reform Contract provided by the London Market Group which also includes the recommended language for markets other than Lloyd’s.
The identity of the second Lloyd’s syndicate is required on all subscription market placements.
Existing policies, or slips for risks which are already fully placed, do not require endorsing with the correct language if they do not already employ it. The provisions of the Claims Scheme (Combined) will override any other provisions detailed in the slip. However, all new slips must adopt the correct language. Further information on appropriate slip language can be found in Market Bulletin Y4622.
Lloyd's monitors the accuracy of language used for claims agreement as part of its regular review processes.