The history of Protection and Indemnity Insurance (P&I) goes some 200 years back.

Around 1810 the first mutual hull clubs were formed to cover damage to owner's own ship as well as damage to the vessel belonging to a third party after a collision.

Later that century, around 1870, the insurance cover was extended to cover also other possible liabilities like personal injury and cargo claims.

Nowadays a normal P&I insurance would cover following liabilities :

- Liabilities in respect of crew
- Liabilities in respect of passengers
- Liabilities for other persons carried on board
- Liabilities for persons not carried on board
- Diversion expenses
- Stowaways, refugees or persons saved at sea
- Life salvage
- Cargo liability
- Extra handling costs
- Collision with other ships
- Damage to fixed and floating objects
- Liability for obstruction and wreck removal
- General average
- Salvors' expenses under Lloyd's Standard Form of Salvage Agreement (1990)
- Towage
- Legal costs
- Enquiry expenses
- Measures to avert or minimize loss
- Fines
- Disinfection and quarantine expenses
- Confiscation of the ship

On a day to day basis the clubs are managed by their managers but they are supervised by the committee members.

These committee members are chosen from the ship owners insured with the club.

Since the ship owners are working together in a mutual fashion all premiums paid are used to pay for liabilities incurred and the P&I club is supposed to work as a non-profit organization.

Nowadays there are 13 P&I clubs within the International Group of P&I Clubs who cover about 85% of the world fleet, the balance is covered by commercial insurers.

The above is only a very brief introduction but should you wish to learn more about P&I Insurance then please do not hesitate to contact us.