The outgoing chairman of the Association of Average Adjusters (AAA), used its annual conference to call for an overhaul of outdate marine insurance policies.

Amid repeated attacks in shipping in the Strait of Hormuz  Chris Kilbee, called for a reform of the UK 1983 Institute Time Clauses – Hulls (ITC). Although widely regarded as a benchmark for clarity and practicality, Kilbee argued that some important elements and application of these clauses were now outdated and no longer aligned with the realities of modern shipping and the overall product.

He told delegates: “The mercantile world has changed dramatically. Time is now as critical as cost, yet many claims practices still reflect outdated priorities.

“The ITC clauses and UK adjusting practice include the restrictive treatment of temporary repairs and overtime, inconsistencies in crew wage allowances and legacy provisions governing underwater inspections and hull painting. In particular there is continued limitation of certain recoveries associated with liner vessels, a distinction that is no longer commercially relevant.

“While the clauses have been highly successful, they are aging and out-of-step with modern commercial realities and this is contributing to inconsistencies and inefficiencies in claims handling. Perhaps now is the time for a review”.

Kilbee added average adjusters can play a key role in dragging the clauses into the twenty first century

“We are more than technicians producing adjustments – we are integral to the claims process and can contribute meaningfully to improving policy wordings,” he explained. “A closer collaboration between adjusters, insurers and market bodies to modernise hull and loss of hire clauses would be helpful. I encourage our profession to take a more proactive role in shaping the future of marine insurance and ensuring policy frameworks remain fit for purpose in a rapidly changing global industry.”

Kilbee continued: “The core purpose of the Association remains to promote professional standards and correct principles in the adjustment of marine claims by ensuring, through examination or otherwise, that those entering into membership possess a high level of expertise.

“The last 12 months have seen us active across the world including participation at the Association of Average Adjusters in the USA, Canada and the Netherlands. We’ve also attended events and meetings of the International Salvage Union, Lloyd’s Salvage Group, British Maritime Law Association and the London Claims Council.”