Protection and indemnity
From Supply Chain Management Encyclopedia
Protection and indemnity (P&I) insurance is a Liability insurance for practically all maritime liability associated with the operation of a vessel, other than that covered under a workers compensation policy and under the collision clause in a hull policy. Full Form Marine Protection and Indemnity Insurance is to at least the full value of the vessel and including third party and statutory pollution liability and crew coverage consisting of but not limited to transportation, wages, maintenance and care. Protection and indemnity insurance (P&I) is a form of marine insurance provided by a P&I Clubы. The P&I Clubs (e.g., Shipowners' Club in Canada now has 6,133 Members; 28,227 vessels; 16,583,572 GT; There are just under 100 staff across the four offices[1]) are mutual (i.e. co-operative) insurance associations that provide cover for its members, who will typically be ship-owners, ship-operators or demise charterers. Unlike a marine insurance companies, which are answerable to its shareholders, a P&I Clubs are the servants only of its members.[2] International Group of P&I Clubs comprises from thirteen principal underwriting member clubs and provids between them liability cover (protection and indemnity) for approximately 90% of the world’s ocean-going tonnage.[3]
See also: Marine insurance
