Protection and Indemnity Insurance, commonly known as P&I Insurance, is a type of marine legal liability insurance predominantly used in the maritime industry. This insurance provides comprehensive protection for shipowners, charterers, and other vessel operators against liabilities incurred in the operation of their ships.
Key Features of P&I Insurance
Coverage: P&I Insurance covers liabilities such as damage to cargo, bodily injury or death to passengers or crew, and claims related to pollution caused by the vessel.
Extent of Cover: The insurance usually includes cover for legal fees and expenses stemming from defending the shipowner against liability claims.
Mutual Clubs: P&I Insurance often involves involvement of mutual clubs known as P&I Clubs. These clubs are collectives of shipowners who group together to provide liability coverage to one another.
Why is P&I Insurance Important?
Operational Security: By handling large compensations for claims, P&I insurance provides financial stability and operational security for shipowners and operators.
Regulatory Compliance: It aids the shipowner in complying with international conventions and maritime law such as the International Convention for the Safety of Life at Sea (SOLAS) and the International Convention on Civil Liability for Oil Pollution Damage (CLC).
-REALTED LINK-
- International Maritime Organization (IMO) Homepage - Provides details on international regulations and safety standards in the shipping industry.
