What is P & I or protection and indemnity insurance ? |

What is P & I or protection and indemnity insurance ?


P&I insurance, provided by Protection and Indemnity Clubs, covers ship owners against their legal liabilities to third parties.

The vessels managed by the Company are entered either with The London Steamship Owners’ Mutual Insurance Association Limited or The North of England P&I Association Limited. Both P&I clubs are members of the international pool of P&I clubs.

Some of the risks or incidents that are covered by the P&I clubs:

a) Compensation for loss of life and or injury to crewmembers for hospitalization, medical expenses etc.

b) Death or injury to stevedores and other third parties.

c) Loss of seaman’s personal effect.

d) Deviation expenses, port charges etc. for the purpose of saving life or for landing an injured or sick crew member from the ship for medical treatment.

e) Fines

  • For breach of immigration regulations;
  • For short or over delivery of cargo;
  • Failure to comply with regulations as to declarations of goods or documentation as to cargo carried.

f) Oil pollution, subject to a limit of USD 500 million each occurrence.

g) Loss or damage to fixed or floating objects; piers, jetties, buoys etc.

h) One-fourth collision liability for loss or damage caused to another vessel due to collision.

i) Loss or damage caused to cargo carried on board.

j) Life salvage

k) Wreck removal – costs and expenses reasonably incurred for the raising, removal, destruction, lighting or marking of the wreck of an entered vessel to the extent that such measures are compulsory by law.

It is important to note that every vessel should have a copy of the P&I club Rule Book and the Club’s Entry Certificate. Master and Senior officers are required to familiarize themselves with the contents of the Rule Book.

You may also know about hull and machinery insurance –


Vessels are insured on Institute Time clauses (Hull) against the following marine perils:

  1. Total loss and Constructive Total loss
  2. Particular Average (A partial loss proximately caused by an insured peril)
  3. Perils of the sea, lakes or other navigable waters
  4. Fire, explosion
  5. Violent theft by persons from outside the vessel
  6. Jettison of cargo
  7. Piracy
  8. Boiler explosions
  9. Stranding/grounding damage
  10. Damage due to heavy weather
  11. Fire
  12. Damage occasioned by crew negligence


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