LMA5390 Explained
The Seven-Day Notice Clause

What the Clause Does

LMA5390 gives underwriters two specific rights:

• ›Full cancellation — terminate the policy entirely on 7 days notice.
• ›Geographic exclusion — remove specific countries, FIRs, or regions from cover, again on 7 days notice.

In both cases the insured may obtain reinstatement or replacement cover, typically at revised premium. If replacement is not possible, the insured loses cover for the affected area — and may therefore lose the ability to operate there if lessors / financiers require continuous cover.

Why It Exists

Aviation war risk is a volatile class. Exposures can shift in hours (missile strikes, airspace closures, conflict escalations). Annual policy terms would leave underwriters exposed at original pricing for a year after circumstances change dramatically. LMA5390 addresses this by keeping the policy continuously rolling — underwriters reprice or exclude as exposures evolve.

For airlines, the clause means that access to specific airspace is always conditional on continuing underwriter willingness to cover it. A geographic exclusion effectively denies commercial operation even when the target state's airspace remains physically open.

Real Cases

• ›February 2022. Following the Russia-Ukraine escalation, LMA5390-style exclusions were applied to Russian, Ukrainian, and Belarusian airspace within days. Premium for adjacent regions rose materially.
• ›October 2023. Middle East escalation triggered geographic adjustments covering Israel, Lebanon, and adjacent airspace. Premiums spiked; some exclusions were partial (altitude-band, time-of-day).
• ›February 2026. The Gulf closure cascade triggered the most rapid multi-FIR repricing on record.