LONDON -- Lloyd's, the London insurance market in which a number of Bermuda reinsurers have big stakes, has come under fire for not disclosing the cost of the 350 million annual insurance policy it said it took out this week for its so-called central fund, or financial safety net.

Lloyd's bought the annual insurance cover from a consortium of reinsurers, including Bermuda-based XL Mid Ocean Re, and now has more than 800 million at its disposal if necessary.

Claims are only paid from the central fund if the Lloyd's individual capital providers and `names' cannot meet their obligations. The first 100 million of claims will be met from the central funds' cash resources. Then the insurance policy will kick in, for up to 350 million a year or 500 million over five years.

XL Mid Ocean Re is part of the consortium backing Lloyd's along with Swiss Re, Employers Re, the St. Paul Companies, Hanover Re and the Chubb Corp.

But a business column in The Times this week attacks Lloyd's chairman Max Taylor's refusal to disclose the cost of the policy.

"Barring a disaster of late 1980s/early 1990s proportions, (the 350 million policy) should provide ample cover for names and corporate capital providers who keel over,'' The Times said. "But as any car and home owners can testify, the devil of any insurance policy is in the small print. It is difficult to endorse wholeheartedly the purchase of this policy because the cost is not disclosed.'' Mr. Taylor said the cost would be disclosed in the next set of Lloyd's annual accounts.

However, The Times argues: "Non-disclosure now only raises suspicions that the policy is expensive. In addition, there is precious little detail provided on whether the annual premiums on this five-year policy are re-negotiable. Or how and when exclusion clauses might kick in.'' The Times said that if Swiss Re, XL Mid Ocean Re and the others backing the policy are "willing to take on the business, it ought to enhance Lloyd's credibility all round -- for professionals and consumers alike. But one can insure against just about anything if cost is no object. If Lloyd's wants to be seen as a good risk, it should waste no time in admitting to the cost of its new cover.'' The central fund at Lloyd's was seriously depleted in the early 1990s when a disastrous set of claims nearly led to the collapse of Lloyd's.

Mr. Taylor said the policy should do much to better protect insurance customers and ease the burden on capital providers who finance the central fund.