Insurers offer ISM clause

PUBLISHED : Wednesday, 24 June, 1998, 12:00am
UPDATED : Wednesday, 24 June, 1998, 12:00am

London cargo underwriters say they have devised an insurance clause to cover new shipping safety rules being introduced next month.

The joint cargo committee of the Institute of London Underwriters said it was introducing the new clause to clarify the insurance for cargoes lost from substandard ships or held up on poorly maintained vessels detained for repairs or barred from entering ports under the new ISM rules.

The new insurance clause would allow cargo owners who innocently used non-ISM-compliant ships to remain covered, the underwriters said.