A project to standardise the terms of engagement for marine surveyors and marine loss adjusters working on behalf of Lloyd’s and London market underwriters has been completed by the Lloyd’s Market Association (LMA) and the Joint Marine Claims Committee (JMCC).

Market support has been given to the new terms, which give greater clarity to all surveyors and loss adjusters regarding the services being delivered, timeline expectations and liability on these services.

The new terms come from a JMCC initiative to mirror the Lillehammer Terms of Engagement for Energy Loss Adjusters which received market support in 2010. The committee, assisted by the LMA team, worked with the underwriting community in both Lloyd’s and the London market to find a similar solution for work undertaken by marine surveyors and loss adjusters. Input was taken from 10 surveying and 10 loss adjusting firms working for the market.

The key change to the TOE relates to the increased authority that experts have to influence ship owners and ship managers with regard to drydocking decisions and control of repair costs. In addition, the two further points were on the individual surveyors’ limit of liability and the overall billing process. The new terms of engagement have placed a flexible limit of liability dependant on the size of the surveying firm, and a fixed limit for loss adjusters.

Work on the new terms of reference began in January 2012 and concluded in January 2013.

Doug Humberstone, the LMA’s manager for underwriting and claims operations, comments: “These new marine terms of engagement will bring increased transparency to the claims process and with that, the potential for more efficient claims handling. It’s an important step forward for the market and a solid foundation for surveyors and adjusters on which to base their work.”

Copies of the new terms of reference are available from http://www.lmalloyds.com/mcg .

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