1. PROTECTION & INDEMNITY
(P&I CLUB)
LECTURER: MR ZARIR YUSOF
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2. 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
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3. 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
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4. 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
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5. THE INTERNATIONAL GROUP
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6. 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
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7. Loss of profit/freight
P&I NOT COVER
Hull and machinery
War risk
Loss of profit/freight
Detention
Strike
Defence
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8. 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
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9. 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
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10. ADVANTAGES Control Profit Premiums Provision of Security
Scope of Cover
Service
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20. THANK YOU
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