okUnited Nations Agency for setting standards on ship safety and prevention of oil pollution connected with which it is responsible for international conventions. It has headquarters in London. The UK’s annual subscription is based on ship’s tonnage on the UK and Red Ensign registers.

Concerns safe operation of ships and pollution prevention. ISM is mandatory under the International Convention for Life at Sea. It applies to: passenger ships (including high speed craft), ro-ro passenger ships, oil tankers, chemical tankers, gas carriers, bulk carriers of 500 gross tonnage or above, high speed cargo craft of 500 tonnage or above, cargo ships and mobile offshore drilling units of 500 tonnage or above. The ‘Company’ (shipowner, manager or bareboat charterer) must establish and implement a safety management system and obtain a Document of Compliance (DOC) every five years that is also audited annually. Non-compliance means automatic termination of the hull and machinery policy (Clause 13 International Hull Clauses). Policies usually protect the interests of innocent mortgagees for a limited period. See INTERNATIONAL SAFETY MANAGEMENT CODE ENDORSEMENT.

Applies to cargo policies to exclude cover whenever the cargo is carried in non-ISM Code certified vessels or whose owners do not hold a Document of Compliance at the time of loading. The exclusion does not apply where the policy has been assigned to an innocent third party who has bought the cargo in good faith.

An agreement between motor liability insurers and own damage’ insurers applicable to accidents involving vehicles registered in different EC states when one is insured for ‘own damage. Regardless of liability, the liability insurer and the own damage insurer share the ‘own damage’ indemnity on a fixed basis. The agreement reduces the costs inherent in an international claim.

Formed in 1999 by the merger between the Institute of London Underwriters and the London and Reinsurance Market Association to bring together marine, non-marine and reinsurance interests. The IUA is the world’s largest representative body of wholesale and reinsurance. The IUA runs the Technical and Underwriting Executive Committee to which other committees, including the Clauses Sub-Committee and the Pollution Group, report.

Represents the interests of aviation insurers in 31 different countries, providing a central office for the circulation of information between members. The Union also seeks to provide a better understanding and conduct of international aviation including space risks. Membership is open to pools, groups or associations whose participants are engaged in aviation insurance on a direct or reinsurance basis. In exceptional circumstances aviation insurance companies may be considered for membership.
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An organization founded in 1934 by leading aviation underwriters with he objectives (i) to constitute an official body to speak and negotiate on behalf of aviation Insurance interests ; (ii) to provide a central office for the circulation of information between members; (iii) to co-operate for the better regulation and conduct of aviation; and (iv) generally to do all such things as may be beneficial to the development and conduct of aviation branch of Insurance.

1. Anyone connected to the Internet for business faces the risk of claims for libel, slander, breaches of intellectual property and confidentiality rights. The policy pays for legal liability and defence costs arising out of ‘e-activities’ broadly meaning ‘the transacting, disseminating or enabling the marketing, buying, selling or distribution of goods, services or information through electronic networks. Additional clauses cover cost of replacing records, financial losses due to fraud, legal fees for enforcing intellectual property rights, loss of profits due to interruption in trading through viruses, hacking, etc., claims by employees, brand protection, etc. 2. Internet service providers insure their Internet liability arising out of the provision of Internet services. Risk management is an important response to all Internet risks.

Information and research portal for global weather derivatives market. Gives access to LIFFE trading and the OTC weather risk market. It is a consortium formed between Intelligent Finance Systems Ltd, LIFFE, and Intellectual Resources Exchange Ltd (WIRE). The portal contains weather data from all major contract sites worldwide. World-wide

Reports on the potential for interruption of a business as a result of fire, breakdown or any other peril covered or to be covered; the business interruption equivalent of a fire survey. The report covers: (a) the effect of ‘damage’; (b) how long it will take to recover from the interruption; (c) how the insured might be assisted to keep the business going during the period of interruption. The report assists in fixing the rate and assessment of the estimated maximum loss (EML) and risk improvement. The report should take account of external dependencies.