Answer
Call is the premium paid by a shipowner (member) to the mutual club to cover third-party liabilities and operational expenses. Because P&I clubs operate on a non-profit, mutual basis, calls are calculated based on the actual claims incurred by the pool in a given policy year rather than a fixed commercial profit margin.
Key Types of CallsAdvance Call: The initial estimated premium levied on a member at the start of the policy year (20th February). It is calculated using the vessel’s risk profile, claim history, gross tonnage (GT), and trade areas to cover anticipated claims, reinsurance costs, and administrative expenses.
Supplementary Call: An additional levy charged to members if the total claims in a given policy year exceed the funds collected through Advance Calls. This call reflects the purely mutual nature of the club, ensuring all members share unpredictable losses proportionately.
Release Call: A premium paid by a member who wishes to withdraw a ship or leave the club before a policy year is officially closed (which typically takes 3 years). Paying the release call settles all potential future Supplementary Call liabilities for that year, allowing the member to exit with no further mutual obligations.
Overspill Call: A special call invoked only when a catastrophic claim exceeds the upper limit of the International Group’s General Excess Loss Reinsurance Contract (currently $3.1 billion). It is capped at a fixed percentage (typically 2.5%) of the Convention on Limitation of Liability for Maritime Claims (LLMC) limit for every vessel entered across all IG clubs.