P&I Insurances - Crew Management
4. Explain why the international group of P&I clubs exists and what key functions it performs.
P&I insurance (Protection and indemnity insurance) is an insurance of liability and certain other losses arising in connection with the ships operation.
P&I clubs exits to arrange collective insurance and reinsurance for the participating clubs. In a P&I club members get together to share each other’s risks. Currently 17 clubs from all over the world with secretariat based in London are the formers and members of the group closely cooperating with each other.
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. 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.
Originally, P&I Club members were typically ship-owners, ship-operators or demise charterers, but more recently freight forwarders and warehouse operators have been able to join.
Working in relation with intergovernmental bodies P&I group has a great role in new conventions and legislation affecting the liability of shipowners and charterers. A great role of the International Group of P&I clubs is also related to consultation and review of the rules and cover for their members to ensure conformity and adequacy to meet the shipping market changing day by day and new regulations affecting to the shipping industry worldwide.The Group provides a forum for Group clubs to develop common policy and promote shipowners’ interests in relation to liability and insurance issues. The Group provides an effective voice for the members of the individual clubs to speak collectively on important industry issues, for example on international conventions and legislation affecting shipowners’
P&I insurance (Protection and indemnity insurance) is an insurance of liability and certain other losses arising in connection with the ships operation.
P&I clubs exits to arrange collective insurance and reinsurance for the participating clubs. In a P&I club members get together to share each other’s risks. Currently 17 clubs from all over the world with secretariat based in London are the formers and members of the group closely cooperating with each other.
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. 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.
Originally, P&I Club members were typically ship-owners, ship-operators or demise charterers, but more recently freight forwarders and warehouse operators have been able to join.
Working in relation with intergovernmental bodies P&I group has a great role in new conventions and legislation affecting the liability of shipowners and charterers. A great role of the International Group of P&I clubs is also related to consultation and review of the rules and cover for their members to ensure conformity and adequacy to meet the shipping market changing day by day and new regulations affecting to the shipping industry worldwide.The Group provides a forum for Group clubs to develop common policy and promote shipowners’ interests in relation to liability and insurance issues. The Group provides an effective voice for the members of the individual clubs to speak collectively on important industry issues, for example on international conventions and legislation affecting shipowners’