P and I clubs

Protection and Indemnity (P & I) Associations and Mutual Clubs.

i. Role of P&l clubs in marine insurance

P&l are the largest and most important of the mutual marine insurance associations, because vessels and are mainty insured with underwriters in the open insurance market and the P&I Clubs are, therefore, ancillary to the marine insurance market. Almost all owners of ocean- going ships obtain insurance for their liabilities to others from a Club which is essentially a non-profit association for collective self-insurance.

ii. Liabilities covered
The liabilities that are covered by these mutual associations include:

- Personal injury, illness, loss of life of crew members and passengers
- Life salvage
- one-fourth of collision liability not included in the hull policies under the ITC Hulls 3/4ths Collision Liability Clause.
- Damager to docks, piers, jetties and other fixed and floating objects other than ships
- Pollution by oil or other substances escaping from the ship
- Wreck removal charges
- Loss of or damage to cargo carried on the ship

 It will be observed that the above are not covered by the policies issued in the open marine market.