Concerns have been raised that the drafting of 'no blame' or 'no litigation' provisions in some alliance agreements may be void. This is because breaches of these aspects are claimed not to be under the court's jurisdiction, apart from those involving wilful default. Other concerns have been raised regarding the extent of exposures or risks that are believed to be covered, or may unintentionally be covered, by the 'no blame' provisions.
In addition to the services of an insurance advisor, specialist legal advice may need to be obtained to identify and manage these risks and ensure that certain risks should not be borne by the alliance, but retained by the individual alliance Participants (refer to B.4 below).
The intent and effectiveness of the alliance agreement must be fully understood before completing the detailed risk assessment of insurable and non-insurable risks.