Protection and Indemnity Clubs‌ Sample Clauses

Protection and Indemnity Clubs‌. The P&I (Protection and Indemnity) insurance covers maritime liabilities incurred by the member8 in direct connection with the operation of the entered vessel. The cover protects the members against losses and liabilities towards third parties. The insurance is available to shipowners and charterers. In the event that a member is involved in a dispute with a third party, the P&I Club will actively protect him, i.e. try to find a solution, and if, ultimately, he is found liable and suffers a loss covered under his policy, the P&I Club will indemnify him for his costs. The insurance covers maritime liabilities incurred by the member in direct connection with the operation of the entered vessel and can be provided for all types of vessels such as tankers, bulk carriers, general cargo ships, container carriers, passenger vessels and more specialised vessels. The purpose of a P&I Club is mutual insurance against liabilities and losses incurred by members in direct connection with the operation of the entered vessels. The cover is, in other words, liability of primary importance in relations to the carriage of goods by sea and the incurred liability must have direct connection to the operation of the insured vessel for the P&I insurance to cover its losses.9 Such insurance is covered by the mutual P&I Clubs, which has both owners and charterers as members. P&I insurance is the central cargo liability insurance in shipping context.10 Because of close co-operation by the P&I Clubs, they are all organised in an association called International Group of P&I Clubs11. In this association the Clubs reinsure each other and share the costs of the biggest claims through a mutual pool. Furthermore the International Group is where the individual clubs take their mutual problems to be solved. This function is one of the reasons why the Inter-Club Agreement was entered into in the first place.