British Marine will make the following change to the 2021 Terms and Conditions which will take effect from 1 January 2021:
Clause 50. Premium
The clause is amended to replace “LIBOR” with “SONIA”. The revised clause is as follows:
Premium payable in respect of this policy shall be paid on such terms as the Insurer shall agree in writing. In the event of failure by the Assured to pay premium or any instalment of premium due under the said terms or any other sum or sums debited by the Insurers, the Insurer may:
50.1 cancel this policy giving a minimum notice period of 7days.
50.2 vary or restrict the terms on which cover under this policy is provided.
In the event of the cancellation of this policy by the Insurer under this Clause, the Insurer shall not be liable in respect of any claim whatsoever, whether arising before or after such cancellation.
The Insurer shall be entitled to interest at a rate of 2% over the SONIA rate for any premium or part of the premium which is due and unpaid.
Reason:
The interest rate benchmark LIBOR is expected to cease towards the end of 2021. The Bank of England’s Working Group on Sterling Risk-Free Reference Rates (RFR Working Group) has recommended the Sterling Overnight Index Average (SONIA) benchmark as its preferred near Risk Free Rate (RFR)