P&I (PROTECTION AND INDEMNITY)
P&I insurance is liability insurance for practically all liability risks associated with the operation of a vessel, other than that covered under the worker’s compensation policy and under the collision clause in hull policy.
Most P&I forms offer payment for loss of life, injury, illness, hospital and medical
Since P&I insurance policies are essentially a contract of indemnity
the insurer is not obligated to pay unless the insured must actually pay the claim.
1) loss of life,injury and sickness of crew passengers and third parties except for liabilities under statuatory compensation acts such as USL&H,Jones Act or State Worker’s compensation.
2) damage to cargo onboard the vessel.
3) damage to docks,jetties and other fixed floating objects.
4) collision liability.