PROTECTION AND INDEMNITY CLUB(P & I CLUB)

Let's know about P & I CLUB

• Formed by shipowners in order to secure cover which are not included in marine insurance policy.

• The maintenance of these cubs is secured by way of a levy upon the amount of tonnage owned by the members of the club, each making proportionate payment to the funds to the club.

The club is divided into two sections, namely, protection and indemnity and usually covers the following risks:

PROTECTION

• cases of loss of life or personal injury
• Repatriation of distressed seamen, and any expenses for hospital and medical attention
• Loss of life following collision.
• Loss or damage by collision to another vessel, including one-quarter of the value of the cargo on board -it being remembered that three-quarters of the cargo is covered under the marine policies.
• Loss or damage to cargo arising from improper navigation.
• Cargo's proportion of general average arising from improper navigation.
• Cost of rising wreck.
• Cost of department of trade inquiries.
• Legal cost of defending claims.

INDEMNITY

• Wrong, short, or mixed delivery of cargo.
• Ship's liability following collision, which is not covered by insurance.
• Cost of fines which may be caused by the barratry and wrongful acts of the master and/or crew.
• Cost of resisting cargo claims.