P&I Clubs Guidelines - Protection and Indemnity Clubs Guidelines

The business unit, which is the largest source of premium volume, provides liability-, property- and income insurances to shipowners and operators. Offering tailor-made covers to suit individual operators, as well as many non-standard P&I shipping covers.

Liability insurance, known as P&I insurance, protects the shipowner against third-party liabilities and expenses arising from the ownership and operation of ships. The insurance is provided through a mutual structure which means that the buyers of the insurance are effectively the insurer.

One of the particularities of the P&I clubs, is that they participate in a claims sharing and collective reinsurance purchasing arrangement through the International Group. The reinsurance programme is the largest in the world and has a capacity exceeding USD 5.5 billion. The arrangement, due to its size and structure, enables the clubs to significantly reduce their risk capital requirements in a cost-effective way.[citation needed] The resulting savings should hence over time be reflected in the premium levels shipowners pay for their P&I cover.

Property insurance covers the assured against losses that may occur to the vessel and her equipment as a result of an accident, while income insurance protects against losses where the ship is wholly or partially deprived of income as a result of it being out of operation. These insurances are provided by Gard on a commercial basis rather than through the mutual organisation. The earnings from this business are therefore retained for the benefit of the mutual members (the buyers of mutual P&I cover).

P&I Clubs Insurance

Protection and indemnity insurance, more commonly known as P&I insurance, is a form of mutual maritime insurance provided by a P&I Club.Whereas a marine insurance company provides hull and machinery cover for shipowners, and cargo cover for cargo owners, a P&I Club provides cover for open-ended risks that traditional insurers are reluctant to insure. Typical P&I cover includes: a carrier's third-party risks for damage caused to cargo during carriage; war risks; and risks of environmental damage such as oil spills and pollution. In the UK, both traditional underwriters and P&I clubs are subject to the Marine Insurance Act 1906.

A P&I Club is a mutual insurance association that provides risk pooling, information and representation for its members. Unlike a marine insurance company, which reports to its shareholders, a P&I club reports only to its members. Originally, P&I Club members were typically shipowners, ship operators or demise charterers, but more recently freight forwarders and warehouse operators have been able to join.

Introduce The vessel's staff to:

• The Development of the P&I Insurance.
• The Scope of the P&I reinsurance Cover.
• How the mutual Clubs are managed.

P&I Clubs Gard

Gard is the largest Protection & Indemnity insurer among the thirteen members of the International Group of P&I Clubs, and ranks second in the marine insurance industry behind Allianz. Its clients include shipowners and operators, shipyards, and companies involved in the upstream oil and gas markets. The group employs more than 485 people in 13 offices in Arendal, Athens, Bergen, Bermuda, Helsinki, Hong Kong, Imabari, London, New York, Oslo, Singapore, Rio de Janeiro, and Tokyo.