P & I Clubs

What is P&I Insurance?

P&I stands for Protection and Indemnity. P&I is insurance in respect of third party liabilities and expenses arising from owning ships or operating ships as principals.

What is a Mutual or Club?

An insurance mutual, a Club, provides collective self insurance to its Members. The membership is comprised of a common interest group who wish to pool their risks together in order to obtain "at cost" insurance cover.The UK P&I Club, as a "not for profit" mutual, is therefore owned by its insureds. As it has no shares to issue, it does not need to make a profit or pay dividends.

The UK P&I Club

The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Limited - generally known as the UK P&I Club - is one of the oldest P&I Clubs. It is also the largest mutual marine protection and indemnity organisation in the world. The UK P&I Club insures nearly one fifth of the world’s total ships .

As a mutual association, the UK P&I Club has no outside shareholders and no financial links with other organisations. It exists solely for the benefit of its Members. As a mutual insurance association, the UK P&I Club is able to offer superior service, attention and coverage to its assureds.

The UK P&I Club is directed by the members themselves. Overall control of the Club lies with the Directors, who are elected by the Clubs' Members from amongst themselves. The Directors normally meet four times a year to formulate policy on calls, the scope of cover, finance and current industry issues affecting the P&I world. They resolve specific claims which may not fall clearly within the cover.

In almost all ports of the world, on-the-spot help and local expertise is always available to Members, and to the masters of their ships, from the Club's correspondents.

The Advantages of Mutuals over Fixed Premium Insurers

The P&I Clubs provide at cost insurance without profit. Fixed premium insurers aim to make a profit for their shareholders.

P&I Clubs have existed continuously for more than 140 years. Fixed premium insurers have no convincing track record of commitment to P&I insurance.

P&I Clubs provide the most comprehensive cover available including the right of the board to cover "omnibus" claims.