P&I Club

Question 1

Features of P&I Club

MAC

Answer 1

owned by members
association of individuals with common interest
provides insurance at cost (almost)

Question 2

Advantages of P&I Club

lands

Answer 2

loyalty and service
club concept of assitance
responsive to needs
driven by insured
stable

Question 3

Coverage granted by clubs

PROSPECTS DDWWCC

Answer 3

Pollution by Oil or Other Substances Escaping from the Ship
Restowage at Director’s Discretion
Claims Payable only at the Directors’ Discretion (the so-called Omnibus Rule)
Personal Injury or Loss of Life to Stevedores and Persons other than Seamen
Personal Injury, Illness or Loss of Life to Passengers
Loss of Personal Effects of Crew and Passengers
Loss of Life, Personal Injury, Illness of Crew Members
Liabilities Arising Under Towage Contracts
Life Salvage
Ship Expenses Incurred in Diversion to Land Sick or Injured Persons, Stowaways or Refugees
Damage to Docks, Piers, and other Floating Objects other than Ships
Damage to Ships without Contact (i.e. caused by Wash)
Removal of Wreck Charges
Loss or Damage to Cargo Carried by the Ship
Collision Liability

Question 3

What is a call

Answer 3

advance payment to join club
fairly substantial
based partly on risk covered, loss record, tonnage of ship involved
funds losses & running costs

Question 4

Termination of cover

blimpw

Answer 4

1.A member may wish to terminate of his own free will.
2. The member’s ship may become a total loss.
3. The member may have sold his interest in the ship.
4. The ship may have been reported missing without trace.
5. The member may have become bankrupt or gone into liquidation.
6. The member does not want to or will not pay his premiums.

Question 4

Pollution by Oil or Other Substances Escaping from the Ship

Answer 4

liabilities, losses, damages, cost, expenses, threat, minimising effect

no concerned with payout by CRISTAL or TOVALOP

Tanker & dry cargo ship

CLC imposes strict liability but defence also

Question 4

Claims Payable only at the Directors’ Discretion (the so-called Omnibus Rule)

Answer 4

within general scope of club cover
not excluded elsewhere in rules
‘good’ member
flexible for new risk, exception

Question 4

Restowage at Directors Discretion

Answer 4

reimbursement for costs
bad weather

Question 5

loss of life, personal injury, illness of crew members

Answer 5

family
damages, compensation, sickness wages, medical, repatriation, substitute expense, funeral
proper treatment at reasonable cost until fit for repatriation
lump sum for permanent disability
repatriation from desertion after loss

Question 5

Personal Injury or Loss of Life to Stevedores and Persons other than Seamen

Answer 5

loss of earnings, compensation for pain, suffering, medical expenses, legal fee
vistors, non-fare paying passengers, surveryors, custom officers, immigration officers, ship agents
do no need to need to be onboard when injured
usually for cargo handlers
may have strict libaility

Question 5

Liabilities arising under towage contracts

Answer 5

entering, leaving or manoeuvring within port under ordinary course of trading
entered ship habitually towed in ordinary course of trading
customary, ordinary, routine towage operations, usual for towage agreements

Question 5

Life salvage

Answer 5

h&m: have to save with life
life salvages not claimable from h&m

Question 5

Personal Injury, illness, loss of life to passengers

Answer 5

do not need to be onboard (shore excursion)
loss of earnings, compensation for pain and suffering
medical expenses, repatriation, refund of passage money, loss of enjoyment of holiday

Question 5

Ship expense incurred in diversion to land sick or injured persons, stoaways or refugees

Answer 5

fuel, insurance, wages, stores, provisions and port charges
calculated on daily runnning cost and pro rated for entire time of diversion

Question 6

loss of personal effects of crew and passengers

Answer 6

on board, travelling to and from ships
no cash jewellery, other valuables

Question 7

Damage to docks, piers and other floating objects other than ships

Answer 7

include infringement of rights
land, water, fixed, movable
except if liability arises by reason of contract or indemnity

Question 7

Damage to ships without contact (wash)

Answer 7

not covered under hull insuracne
law: ships to proceed at a speed that does not cause loss or damage to other ships

Question 7

Removal of wreck charges

Answer 7

liability, cost and expenses
raising removal, destruction,lighting, marking of wreck or failure to
entered ship or part of it confirmed to be wreck
within jurisdicion of port or stae whose law compel member to remove wreck
wreck removal not liability of third party (cause of sinking)

Question 8

Loss or damage to cargo carried by ship

Answer 8

intended to be, being, orhaving been on ship
loss, shortage, damage ,owner breach of duty, delay, discharging damage, worthless cargo, additional cost
no claimable by other party
except failure to arrive, late arrival or Failure to load, deviation, deck cargo not customary loaded on deck

Question 9

Collision Liability

Answer 9

cover 1/4 of liability not covered in ICC hulls 3/4 liability clause
if not recoverable by hull insurance polucy
consequential loss

Question 10

What are fines

Answer 10

imposed on owner or seaman where owner have to reimburse or by manager consent
acts or omission in his capacity as represntative
within scope of employment
except personal misconduct
safe working conditions, short/ ober deliver, declaration, smuggling, immigration, discharge of subtances like oil, act of negligence

Question 11

Pay to be paid

Answer 11

discharge liabilities before indeminified
deny full statisfaction of judgement if cannot compensate due to insolvency
third party act transfer insured liability and rights against insurer to third party, but defeated by this rule

Question 12

Fixed Premium

Answer 12

more option for ship owner
big player= p&I, small player = fixed premium
BMM, Osprey, Intercoastal