This document provides an overview of Protection and Indemnity (P&I) insurance. It discusses that P&I insurance indemnifies shipowners against third party liability claims that arise from operating ships. It covers areas like crew injury, passenger injury, oil pollution, cargo damage, collisions with other vessels, and wreck removal. The document outlines the main types of P&I coverage including personal injury, cargo liability, oil pollution risks, and fines and costs. It also discusses the history and structure of the P&I clubs that provide mutual P&I insurance to shipowners.

2. The wonderful world of
(Dutch) P&I
Rotterdam

3. • Is a “contract whereby one undertakes to
indemnify another against loss, damage or
liability arising from a contingent or unknown
event.”
• “One trades the possibility of a great loss (the risk)
for the certainty of a small loss (the premium)”
What is insurance?

4. • Indemnification rule: aim is to compensate damage,
restoration of the status qua ante, not a substantial
improvement in position.
• Requirement of damage from a fortuity (an “uncertain
event”), not through “ordinary wear and tear”.
• Parties define the insured risks in contract.
• Standard contract terms, e.g. Institute Clauses (UK)
A few basics of insurance

5. • Assured needs to act in the utmost good faith
• Assured needs to disclose all material facts
• Misrepresentation might render the insurance contract
void (as if it never was)
A few basics of insurance - II

6. • In (English) insurance law, breach of warranty
justifies termination of the contract. Irrespective of
existence of a causal link between the damage and
the breach of warranty.
• Contract might also contain subjectivities. The
Assured needs to comply herewith. Not as strict as
a warranty.
Important warranties

7. Protection & Indemnity
(P&I)
Crew
H&M
Charterers
Liability
FD&D
The main Marine insurances
Cargo

8. • Insurance for loss of or damage to cargo.
• Premium is often a percentage of the value of the cargo
• ICC (A )-all risk or ICC (B), ICC (C) named perils clause.
Marine Cargo Insurance

9. • Owners enter into a contract with crew members
• Owner is liable to pay compensation for injury or death
• The contractual obligations can be insured via a separate
crew insurance
• Crew risk can also be insured under P&I (deductible is
usually higher)
Crew insurance

10. • Main concern of a Ship Owner are his assets i.e his ships
• Ships break down. Mainly engine failures. Fixing or
replacing the machineries are expensive!
• Ships also collide with other ships and/or fixed objects.
The ships Hull will suffer damages.
Hull & Machinery (H&M) insurance

11. • Shipowner can insure up to the value of the ship (remember
indemnity rule)
• Generally built up as follows: 75% of the value in H&M, 25%
total loss only
• Shipowner can also include liability cover under H&M i.e
collision risk and Removal of wreck.
Hull & Machinery (H&M) insurance - III

12. • In case vessel enters into a war zone ( defined by the Joint
war Committee), H&M insurance replaced by War insurance
(additional premium)
• Loss of Hire insurance provides cover for the fact that the
vessel cannot be used to trade. Named perils
Hull & Machinery (H&M) insurance - III

14. Protection & Indemnity
(P&I)
Crew
H&M
Charterers
Liability
FD&D
Position P&I in the insurance package
Cargo

15. Protection & Indemnity
Rotterdam

16. s.com/lloyds/about-

17. 1668: Tower street – Lombard Street 16 till 1774

18. The Royal Exchange 1774 - 1928

19. The Royal Exchange
Leadenhall Streer 1928 - 1985

20. Lime Street: since 1985

21. Lloyd’s coffee house, Lombard Street 16

22. Lloyd’s versus the P&I Club
• At the beginning: 18th Century different Hull clubs
(Lloyd’s Coffee House).
• Increased liabilities for Shipowners and growth of world
economy.
• Need for cover on personal injury and collision liability both on
commercial and mutual basis.
• First P&I Club: Britannia in 1855.

23. The P&I Clubs (“the 13 sisters”)
.

24. P&I Clubs are mutuals…

25. …don’t have to make a profit …

26. …and have insured 90% of the world
tonnage.

27. Reinsurance program IGA.

29. The P&I policy for owners

30. The Assureds
• Member / Assured
• The main assured
• Joint entrants
• Economical owner
• Legal owner
• Operators
• Managers
• The holding company
• Co-assureds
• Miss directed arrows
• Restrictive co assured clause

31. The P&I cover
• Standard P&I cover
• Special risks covered by additional covers:
• P&I war risks (usually part of standard cover)
• Contractual extension
• Off shore extension
• Salvors’extension
• The P&I Limits

32. The Standard P&I cover

33. A Little History…
• At the beginning: 18th Century different Hull clubs
(Lloyd’s Coffee House).
• Increased liabilities for Shipowners and growth of world
economy.
• Need for cover on personal injury and collision liability both on
commercial and mutual basis.
• First P&I Club: Britannia in 1855.

34. The main P&I Cover
• Personal injury / illness / death / repatriation
• Stowaways and refugees
• Collision with other ships
• Loss or damage to property
• Oil Pollution risks
• Wreck removal
• Cargo liabilities
• Fines and costs
• Omnibus Rule

35. Personal injury/illness
Member’s liability for injury,illness,
death of:
• Crew
• Passengers
Third party liabilities arising out of:
• ‘Negligence’
• Legal Obligation
• Contractual

36. P&I Cover
• Personal injury / illness / death / repatriation
• Stowaways / refugees and Life salvage

38. P&I Cover
• Damage to the vessel
• Personal injury / illness / death / repatriation
• Stowaways / refugees and Life salvage
• Collision with other ships (RDC – FFO – “wash damage”

41. P&I Cover
• Personal injury / illness / death / repatriation
• Stowaways / refugees and Life salvage
• Collision with other ships
• Loss or damage to property

42. P&I Cover
• Personal injury / illness / death / repatriation
• Stowaways / refugees and Life salvage
• Collision with other ships
• Loss or damage to property
• Oil pollution risks

44. P&I Cover
• Damage to the vessel
• Personal injury / illness / death / repatriation
• Stowaways / refugees and Life salvage
• Collision with other ships
• Loss or damage to property
• Oil Pollution risks
• Wreck removal

47. Cargo damage
• Damage to and loss of cargo
• Disposal of Cargo
• Cargo’s contribution in G.A.

48. P&I Cover
• Damage to the vessel
• Personal injury / illness / death / repatriation
• Stowaways / refugees and Life salvage
• Collision with other ships
• Loss or damage to property
• Oil Pollution risks
• Wreck removal
• Cargo liabilities
• Fines and costs

49. Fines
• Cargo
• Import duties
• Immigration
• Pollution

50. The Omnibus Rule
Any liabilities which the board may determine to be within the
scope of club cover, but only to the extent that it decides that the
member shall recover from the club.
Presentatie Smit

51. Guarantees

52. Be carefull out there!

54. Don’t get fooled!

55. Yes, International trade and shipping
can face serious issues and claims…

58. But essential = what is my position, what do I want?
Head owner
Bareboat charterer
B/C
Time charterer
Voyage charterer
Cargo interest
T/C
V/C
B/L

59. Dutch P&I Services

60. Dutch P&I Services
• Roots in the Royal Van Ommeren Shipping Company
• Independent P&I specialist since 1988
• Major player in the P&I industry
• Largest P&I correspondent in the world
• Top 5 of independent P&I specialists in the world
• Over USD 40 million premium per annum
• Head office in Rotterdam, branches in Amsterdam, Antwerp and
Copenhagen
• > 50 staff with different backgrounds
• Covering ‘all aspects’ of P&I and related issues
• Direct or through insurance agents

61. Cover Claims Consultancy
P&I Correspondent
Copenhagen area: DUPI Copenhagen
Amsterdam area: DUPI Amsterdam
Rotterdam area: Dutch P&I Services
Antwerp area: DUPI Antwerp
2,500 claims per year
Dutch P&I Services
We know how
Daily training of knowledge and skills
We know who
Part of the industry / network

62. Our Activities
Owners’ P&I
Charterers’
Liability
Defence
(FD&D)
Cover – Claims – Consultancy
 Access to the full P&I Market 
Special
Risks

63. Key figures
Global network of
Approx 500 P&I
Correspondents
available 24/7.
Own independent
network of
marine specialists.
In every major port
on every continent.
Key partners
EPIC (Europe)
SAPIC (South America)
Lamorte (North America)
MEDPIC (Med)
MOL netw. (Worldwide)
P&I Ass. (Africa)
Aus ship (Australia)
China P&I (Asia)
P&I Gulf (Gulf)
Building blocks of DPI network
MEDPIC
P&I Gulf
P&I Associates Ltd.
Lamorte & Burns

64. A few key clients:

65. De focus
Dealmaker
DUTCH P&I
100% independent
P&I Specialist
Strategic placer
Relation manager
Insurance professional
Administrator
Contract consultant
Claims handler
Post-broker
Conflict handler
Helpdesk
Informer
Risk analysis
Claims specialist
Legal counselor
Cover specialist
Controller
Problem solver
This is wat we can do for clients…