FAQ about P&I
What
is P&I?
P&I means Protection and Indemnity. P&I insurance is a
liability insurance and covers the ship-owners
(and charterers) for the liability they might incur
towards ship's crew and other third parties as well
as the shipowners' liability for f.inst. cargo carried,
oilspills, colissions, damage to fixed and floating
objects, wreck-removal, fines from authorities etc.
and also legal assistance in respect of the mentioned
liabilities.
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Who is the
insurer?
Although there are several fixed-premium insurance providers,
offering P&I insurance, the majority of such P&I insurance
is organised as mutual insurance. This means that ship-owners
group together in so-called "P&I Clubs" and insure themselves
on a mutual basis. A Manager (Managing Company) are normally
appointed to run the day to day work of the Club. The
members of a P&I Club normally pay a fixed rate
(ETC - Expected Total Call) per ship/tonnage per year.
However, if the total amount of claims paid out by the
Club in a certain year exceeds the amount of contributions
paid in by the Club's members, the members of the Club may,
because of the insurance arrangement being based on
mutuality, have to pay additional contributions to balance
out the year.
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What is a P&I Correspondent -
and where can I find the Correspondent?
Shipowners operate all over the world wherefore
the P&I Clubs must be able to effectively deal with
and assist their members with P&I related claims matters
wherever these occur.
The Clubs have established a worldwide network of representatives known as P&I
Correspondents to handle P&I related matters. You will find a P&I Correspondent in every costal country in the world able to offer their services at any port in the world.
