Answer
What is a P&I Club?
P&I Club is a mutual, not-for-profit marine insurance association owned by its shipowner and charterer members, providing cover against third-party liabilities arising from the operation of ships.”
The International Group of P&I Clubs (IG) is an association of 12 major principal mutual P&I Clubs that collectively provide third-party liability insurance for approximately 90% of the world's ocean-going tonnage.Protection- Legal assistance provided to protect from high inflated claims.
Indemnity- To put back into the same financial status as was just before suffering the loss.
Risks Covered by a P&I Club:-
1.Personal injury or loss of life of the crew, passengers and stevedores, Loss of Personal effects.
2.Diversion expenses
3.Life salvage
4.One-fourth collision liability
5.Towage contract liabilities
6.Std pollution covers- Blue cards for CLC and Bunker convention
7.COFR for US OPA 90
8.Wreck liabilities
9.Cargo liabilities
10.Unrecoverable portion of G.A
11.Fines
12.Legal Costs
13.financial security as per MLC
14.Unrecvrable portion of GA
15.Certain expenses of Salvor
16.Omnibus Cover- On the discretion of Board of Directors for the claims neither expressly included nor excluded. One condition is that the claim must fall within the general cover of P & I (Claim arose during operation of the vessel)
a. Is not for a listed peril
b. Is not excluded
It “Broadens” or extends coverage beyond the listed perils.
Exclusions-
1.Loss or Damage to own property.
2.Contractual liabilities.
3.Salvage Operation carried out by member’s own ship.
4.War risk
5.Contraband- Unlawful activities.
6.Discharge outside destination
7.Failure to arrive, late arrival or failure to load.