IUMI Welcomes Revised York-Antwerp Rules

International Union of Marine Insurance (IUMI) welcomed the revised York-Antwerp Rules (YAR 2016) adopted by the Comité Maritime International (CMI) in New York last week.

The York-Antwerp Rules is a set of rules by which general average (GA) is adjusted. Under the doctrine of general average sacrifices and expenses arising from a marine casualty are apportioned between the ship, cargo and others interested in a common maritime adventure according to their contributory values at the termination of the voyage.

The most important gains in the new YAR for insurers are:

1. Interest will be fixed annually at ICE LIBOR on the first banking day of each year in the currency of the adjustment plus four percentage points.

2. Commission at two percent will no longer be recoverable.

3. Measures designed to speed up the adjusting process introduced. These include excluding low value cargo from contributing in GA if the cost of including them is greater than their contribution and clarifying the process by which adjusters can estimate GA allowances in the absence of information from the parties.

4. Approved CMI guidelines about the nature and operation of the GA process introduced which will assist those involved in GA in understanding what is required of them.

BIMCO is now to decide if will approve the YAR for incorporation into their standard contracts. Should this be done the new YAR should start to be incorporated into contracts of carriage by the end of 2016.

(MarEx)