Protection & Indemnity

Protection and Indemnity insurance, or as it is more commonly known – ‘P&I’, is third party legal liability insurance for ship owners, operators and charterers. “Third parties are any person, apart from the ship-owner himself, who may have a legal or contractual claim against the ship. The principal risks covered are liabilities, costs and expenses for: Injury, illness and death of crew, passengers or other persons on board, Cargo, loss or damage. Legal liability is decided in accordance with the laws of the country where an accident takes place. The P&I insurance cover for contractual liability which is agreed at the time the owner requests insurance cover from the club and is usually in accordance with the owner’s responsibility under crew contracts or special terms relating to the trading pattern of the vessel.

The basic rule governing P&I cover is that the liability or loss must arise:

– In respect of the Member’s interest in an Entered Ship; and
– Out of events occurring during the period of entry of the Ship in the Association; and
– In connection with the operation of the Ship.