Protection and indemnity (P&I) insurance Flashcards
(10 cards)
What is mandatory insurance for shipowners using vessels for commercial purposes?
It is insurance required for all shipowners who use their vessel for commercial or transportation purposes, including carrying passengers, workers, or cargo across international waters.
What do most flag states require regarding this insurance?
Most flag states require this insurance regardless of whether the vessel is commercially registered or private, and it is required when entering ports.
What risks does this insurance encompass?
It encompasses all risks associated with the operation of the vessel other than those covered under the collision clause within the hull policy.
What does this insurance usually include?
It usually includes the employer’s liability insurance and covers third-party risks for damage to cargo during carriage, threats of environmental damage, damage to ports, collision, death and injury, and can also include personal effects.
What type of insurance is P&I insurance?
P&I insurance is a mutual insurance provided by a P&I club, offering a financial safety net and additional help in dealing with claimants and loss.
Is P&I insurance compulsory in EU waters?
Yes, under the European directive, P&I insurance is compulsory for all EU and foreign ships in EU waters and ports.
What is required if the vessel is owned by a British company?
There is a legal requirement to have the employer’s liability in place if the vessel is owned by a British company or flying the British Ensign.
What does employers’ liability insurance cover?
Employers’ liability includes coverage for essential medical assistance and direct medical costs.
What is requested upon every port clearance?
A certificate of insurance is requested upon every port clearance.
What restriction is usually included in the policy?
There is usually a clause in this policy restricting the number of US crew to be employed.
