PROTECTION & INDEMNITY (P&I CLUB) LECTURER: MR ZARIR YUSOF 17/10/12

HISTORY So-called P&I Clubs 19th century Ship-owners found themselves with Lloyds were unable or unwilling to cover their liability Ship-owners formed themselves into mutual associations They agreed to share each other’s claims These early organizations have now developed into thirteen Mutual Insurance Associations So-called P&I Clubs 17/10/12

They operate on a non-profit making mutual basis 1st mutual Clubs formed in England mid 18th Century to cover hull and machinery losses also called “protection” Introduction of statutory liability for loss of life and injury to passengers gave rise to a new liability which was covered by the establishment of "indemnity" mutual P&I CLUB The Clubs are associations of shipowners and charterers, owned and controlled by the insured shipowner or charterer "Members" They operate on a non-profit making mutual basis Aiming to call up only sufficient money in each year to meet costs, expenses and claims for that year 17/10/12

13 P&I make up the International Group of P&I Clubs P&I CLUB TODAY 13 P&I make up the International Group of P&I Clubs Exists to provide a forum,mutual reinsurance scheme,lobbying organisation and monitor transfer of business between members. The rate varies according to the risk an individual Member's vessels represents to the Club Co-operate in two important areas 1st, the Clubs themselves share claims with each other and buy high levels of reinsurance on a collective basis 2nd area of co-operation is in matters of common interest, such as new legislation or discussions at the International Maritime Organization (IMO) or standard shipping contracts 17/10/12

THE INTERNATIONAL GROUP 17/10/12

THE COVERAGE 17/10/12 Seamen Passengers Third parties 1. Death and personal injury of Seamen Passengers Third parties 2. Liabilities in respect of stowaways or persons saved at sea. 3. Liabilities arising from collisions 4. Liabilities arising from groundings 5. Liabilities arising from damage to fixed and floating objects 6. Liabilities arising from pollution 7. Liabilities arising from wreck removal 8. Liabilities arising from towage operations 17/10/12

Loss of profit/freight P&I NOT COVER Hull and machinery War risk Loss of profit/freight Detention Strike Defence 17/10/12

The P&I Club exists in order to help the ship-owner and pay his liability claims Operates as a mixture of an insurance company, a law firm and a loss adjuster & able to assist ship-owner in every aspect Have access to a high quality network of specialist technical advisers, maritime lawyers and local commercial correspondents THE SERVICES Shipowner and his Club will be properly advised on the essential elements of the claims which arise out of a casualty The Clubs insure 95% of all ocean-going ships have cooperated for over 100 years (Pooling Agreement 1899) The Clubs’ boards of directors comprise a hugely influential body of ship-owners The Clubs have consistently acted in the interests of the maritime community 17/10/12

Liaison with International Oil Pollution Compensation Fund (IOPCF) P&I ROLE IN OIL SPILLS Insurance Guarantor Liaison with International Oil Pollution Compensation Fund (IOPCF) Source of Funds Legal Advice Casualty Response Tanker Casualties 17/10/12

ADVANTAGES Control Profit Premiums Provision of Security Scope of Cover Service 17/10/12

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THANK YOU 17/10/12