Jurisdiction(s):
United Kingdom

Key definition

Sanction definition

What does Sanction mean? A sanction is the court’s consequence for a party’s failure to comply with a rule, practice direction or order. It is a descriptive procedural term used across England & Wales, Scotland, Northern Ireland and Ireland; powers derive from each jurisdiction’s rules and case law. Sanctions include: strike‑out or dismissal of a claim or defence; debarring a party from evidence or participation; the automatic effect of an unless order; adverse or wasted costs; and, for serious breaches, contempt of court (fines or committal). In England & Wales, relief from sanctions is under CPR r 3.9 and Denton, focussing on seriousness/significance, reasons, and all...

Sanctions in UK insurance policies: LMA 3100A/3200 drafting and operation, reinsurance impacts, secondary sanctions, payment suspension and cancellation, and key case law

Published by a LexisNexis Insurance & Reinsurance expert

Practice notes

The Practice Note titled UK financial and trade sanctions for insurers sets out which sanctions affect insurers, what those measures involve, how the Financial Conduct Authority oversees compliance, and the screening and due diligence insurers should implement. It delves further into policy wording—especially how sanctions interact with insurance contracts and the purpose of sanctions clauses.

Lloyd's Market Association Sanctions Clauses

The Note concentrates on the market-standard formulations: the Lloyd’s Market Association (LMA) 3100A clause (LMA 3100A) and the LMA 3200 clause (LMA 3200). These were issued in October 2023 following an LMA consultation on the LMA 3100 clause first published in 2010. LMA 3100A keeps the LMA 3100 wording, but its title removes the words ‘and exclusion’ to indicate the clause pauses, rather than removes, cover. Under LMA 3100A, the Sanctions Limitation Clause provides that no (re)insurer is taken to provide cover, nor be liable to pay any claim or confer any benefit, to the extent that doing so would amount to the provision of such cover...

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Daniel Martin

HFW

Daniel advises traders, shipowners, freight forwarders, insurers and brokers on a host of regulatory and compliance issues, including international trade sanctions, export controls, customs and anti-corruption legislation. He advises on all aspects of the EU and UK sanctions legislation, and he is also familiar with the application of US sanctions to non-US persons. Daniel also advises clients on disputes arising from charterparties, sale contracts, bills of lading, marine insurance and logistics operations, and he uses that experience and expertise to provide detailed, practical advice which is tailored to clients in the commodities, shipping, logistics and marine insurance sectors. As well as advice on dispute resolution, customs and regulatory compliance (including ways to engage effectively with HMRC and other regulators), he also advises on compliance procedures and controls which traders, shipowners, logistics companies, banks, insurers and brokers should adopt to minimise...

James Neale

HFW

James is an associate in HFW's London office. He specialises in regulatory and compliance matters, including economic and financial sanctions, export controls, and customs. His clients include shipowners, charterers, insurers, and commodity traders. James also advises in respect of shipping and logistics disputes, including charterparties, ship sale and purchase, and sale of goods. During his training, James spent time in HFW's commodities and EU regulatory departments, as well as six months in HFW's Piraeus office advising on shipping disputes. Prior to joining HFW, James worked on financial sanctions policy and implementation in HM Treasury and the Office of Financial Sanctions Implementation (OFSI). James is qualified in England and Wales....

Web page updated on 21/05/2026

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