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Lloyd's Claims Scheme

To support the efficient handling of claims in a subscription market, Lloyd’s operates a Claims Scheme which sets out principles and arrangements for the determination of every claim made on policies underwritten by two or more syndicates (with some limited exceptions).

The Lloyd’s Claims Scheme (Combined) was issued on 30 September 2011 and contains in Part II the 2010 Claims Scheme, which applies to all in scope subscription market claims in the Lloyd’s market (please note that Part I no longer applies to any claims).

The 2010 Claims Scheme is designed to streamline the claims agreement process for claims with multiple Lloyd’s insurers on risk whilst ensuring that each claim is determined by the appropriate number of number of agreement parties dependent on its complexity and financial value.

The application of the Claims Scheme is mandated for all syndicates by the Lloyd’s Franchise Board using its powers under paragraph 12 of the Underwriting Byelaw, which itself is made effective through the Council’s powers set out in the Lloyd’s Act 1982.


To support the operation of the 2010 Claims Scheme Lloyd’s has drafted the 2010 Claims Scheme Process Guidelines.

For those claims still being handled via paper, it is recommended that claims handlers provide their processing instructions to the Xchanging Claims Services (XCS) Claims Processing team by completing the relevant sections of the following ‘CP Instruction Form’:

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.

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.