P&I Clubs Insurance - YouTube

The shipping industry requires a unique form of insurances large investments are

exposed to considerable risks and unforeseen losses are always present in

addition liabilities connected with the operation of a ship are numerous and

immediate therefore a ship owner relies upon overall insurance cover

to an extent that is practically but financially safe typical ship owners

insurance includes hull and machinery insurance covering physical damage to or

loss of vessel and equipment hull and freight interest covers the financial

interest that a ship owner may have in the vessel beyond the insured value loss

of hire covers loss of income as a result of damaged covered by the hull

and machinery insurance war insurance P&I insurance covering certain third

party liabilities

the learning of reduced the vessel staff to the development of the P&I insurance

the scope of the P&I insurance cover and how the mutual clubs are managed

while whole insurance began in the 16th century P&I insurance did not develop

until the 1850s at that time ship owners saw a need for cover of third-party

contractual liabilities and other risks not covered by hull insurance in the

early days the owner of a ship was often the owner of the cargo if the cargo

owners interests were different the ship owner had full indemnity clauses from

cargo owners the right to compensation in various countries was not well

developed with respect to ship owners liability for personal injury or damage

to property from 1850 onwards however third-party and contractual liabilities

of ship owners increased cargo interests attack the indemnity clauses of freight

agreements and gradually gained the goodwill of the courts ship owners

liability for damage caused by his employees arose of society became

increasingly aware of the ship owners social responsibility for the well-being

of his employees this resulted in a considerable increase in liability for

the ship owner and the need for insuring this risk the result was the

establishment of one of the first P&I clubs in England

within the past decades the development of Cree and I insurance has been

remarkable it is now as important for the ship owner as any other insurance

most countries require P&I insurance to left the vessel sale and the ship owners

cannot afford to risk their fortune by not having P&I insurance P&I clubs are

Mutual Insurance Association's many of which have been in existence since the

1850s they enable ship owners to protect themselves against the many legal

liabilities to which they are exposed in the course of their business the clubs

derive their economic strength from mutuality they are nonprofit

organizations which collect premiums and if necessary levy supplementary calls in

order to pay claims and to cover administrative costs protection and

indemnity insurance covers ship owners charters and ship operators against

liabilities arising in direct connection with the operation of a vessel the

insurance covers the ship owners liabilities to third parties the

insurance supplements the hull and machinery insurance

please move the correct sentences to the boxes

a ship owner or chitara becomes a member of a P&I Club by ensuring a vessel with

the particular Association the entry is valid until cancellation or until the

vessel is sold by the owner or wrecked a ship owner or a charter wishing to enter

a vessel into a mutual P&I club provides the association with relevant

information about the risks to be ensured the P&I club issues a

certificate of entry merely as a confirmation that the vessel is entered

into the Association the certificate of entry contains extracts of the insurance

conditions the certificate of entry also refers to the association's statutes and

rules in force at the time in question

the following factors will influence the premium tonnage or size of a ship flag

and type trading area type of cargo nationality of crew and type of crew

contract and the performance of crew and ship management

the premium comprises two elements advanced premium agreed between the

owner and the club for an insurance year subsequently adjusted depending on the

individual performance by the vessel owner supplementary contribution to be

paid at the end of the policy year based on the performance of the whole

membership of the P&I club according to the principle of mutuality the members

share each other's risks and supplementary contribution will only be

calculated to the extent it is necessary to balance out the year

similar to other Insurance Association's P&I claps have arranged for reinsurance

in order to protect the members against very large claims the 14 major P&I clubs

have also formed the international group of P&I clubs the clubs within the

international group cover almost 90% of the world's merchant fleet through this

arrangement the club share major claims and by reinsurance for catastrophic

claims

the P&I insurer handles most of the claims the club has a large staff of

claims adjusters within the organization and has also appointed correspondents in

ports worldwide the correspondence of the clubs working close cooperation with

the ship's agent in such matters as arranging surveys and appointing lawyers

if legal proceedings are started the centralized claims adjustment through

the club helps to develop the experience and know-how required to guarantee

effective and rational defense against claims made against the ship owners

liabilities incurred by ship owners occur throughout the world the

legislation and legal practice will therefore vary accordingly the P&I club

is nevertheless willing to cover a ship owner for any legal liability

irrespective of the applicable legislation in short P&I cover has no

geographical restrictions

much of the everyday work at the P&I Club involves answering inquiries from

members on current problems yet the greatest amount of the club's work

focuses on the investigation and processing of claims for settlement the

P&I underwriter is also engaged in rather extensive advisory work for

prevention and limitation of the memberships liabilities by means of

handbooks circulars newsletters and special magazines the P&I clubs also

arrange for seminars on specific topics please familiarize yourself with the

scope of the cover in the three areas protection risks personal injury and

claims protection risks vessel and other property and indemnity risks

the P&I insurance covers personal injury loss of life in respect of crew and

third parties and operations to save life at sea medical hospital funeral and

repatriation expenses in respect to sick or injured members of the crew

repatriation expenses unemployment indemnities and loss of effects of

shipwrecked crew expenses

it's in connection with stowaways deserters and refugees extraordinary

expenses incurred in cases of outbreak of plague or other diseases and

quarantine and disinfection expenses

the P&I insurance covers loss of or damage to any other ship boat or craft

auto property on board them so far as such liability is not covered under the

ordinary hull policy damage to any other vessel or property thereon without

actual contact for example wash damage damage to docks piers jetties boys

cables or other objects of a like nature and property thereon cost of

compulsorily raising removing or destroying the wreck of the entered ship

or any other ship sunken collision with or by the fault of the entered ship

insofar as such liability is not covered under the ship's hull and machinery

policy loss or damage for which a member may become liable under an indemnity

given to the owners or operators of tugs craft cranes or other appliances used

for towing loading or discharging insofar as such liability is not covered

under the ship's hull and machinery policy oil or any other polluting

substance escaping from an internship resulting in loss damage or

contamination for which the member may become liable

the P&I insurance covers claims for loss short delivery pilferage of or damage to

goods intended to be or being or which have been carried in the entered ship

fines imposed by government or custom authorities in respect of short or over

delivery of cargo smuggling desertion presence of stowaways breach of

immigration regulations cargoes proportion of general average and/or

special charge is not recoverable by reason of a breach of the contract of

carriage costs of Defence in a governmental or other enquiry incurred

with the approval of the club and in any other case which the club considers

involves a question of importance or principle to the members third party

liability in respect of owned or leased containers or other transport devices

nightclubs are non profit insurance associations which derive their economic

strength from the principle of mutuality P&I clubs collect premiums and if

necessary levy supplementary calls in order to pay claims and to cover

administrative costs P&I clubs enables ship owners to protect themselves

against the many legal liabilities to which they are exposed in the course of

their business the owners of entered ships are called members and exercise

their authority through the elected Committees of the clubs the liability

covered by the P&I club is that which has arisen in direct connection with the

operation of the entered vessel the P&I club will cover a ship owner for any

legal liability irrespective of the applicable legislation