At IUMI’s request Mike Roderick, partner of Clyde & Co and legal advisor to the London insurance market’s Joint Cargo Committee, switched from his scheduled topic to resume main developments in what he described as a “rapidly evolving situation with an uncertain outcome.”
As an “immediate priority” insureds wishing to press claims in Korea should ensure compliance with the deadline set by the Seoul District Court, he said, namely October 10 for the registration of claims and between October 11 and 25 for the filing of claims with the receiver.
All documents need to be translated into the Korean language which could entail delays, he reminded.
As regards application of insolvency or financial default exclusion clauses - which an audience poll revealed that some two-thirds of IUMI members include in their standard Policy terms – Roderick advised that that this might involve “complex legal and factual questions”.
Lina Conrad, from US-based insurer ClimAssure, warned that a scramble by container handlers to sort through cargo boxes summarily dropped off by Hanjin ships, could cause “chronic delays” at ports and therefore along the whole supply chain.
Nick Derrick, chairman of IUMI’s cargo Committee, had earlier referred to the association’s fears over the financial viability of the liner sector as whole, and the risk of Hanjin’s collapse having a “house of cards” effect.
Read all the background to the Hanjin Shipping bankruptcy on our timeline