What is P&I Club in shipping?

What is P&I club? A Protection and Indemnity or P&I club is a non-governmental, non-profitable mutual or cooperative association of marine insurance providers to its members which consists of ship owners, operators, charterers and seafarers under the member companies. Why is P&I insurance Important?

What is the purpose of the P&I Club?

P&I insurance is often provided by a P&I club, which is essentially a mutual insurance association that provides risk pooling, information, representation and risk mitigation for its members.

How do P&I Clubs operate?

How do the P&I clubs work? P&I clubs work on a non-profit basis. It is the club of shipowners who are acting both as assured and insurers. P&I clubs work on the principle of mutual sharing and pooling of the risk.

What does P&I stand for in insurance?

There are three basic types of marine insurance: Hull and Machinery, Cargo, and Protection & Indemnity (P&I) insurance. This article is an overview of P&I and coverage concerns related to it.

What is P&L Club?

A P&I club is a non-profit marine insurers’ association. It is a group of shipowners who mutually indulge in the coverage of their own civil liability risks.

What is so special and unique about the P&I insurance?

P&I insurance is specifically designed to address the unique needs of the marine industry, covering practically all maritime liability risks. Adverse weather, rough seas, risk of cargo damage and dense traffic are just a small sample of the challenges faced.

Does P&I cover pollution?

The Transport Operations (Marine Insurance) Act 1995 (QLD) requires that all ships over 15m in length have P&I insurance with coverage beginning at $250,000 for pollution clean up and $10,000,000 for salvage and wreck removal.