P&I (PROTECTION AND INDEMNITY)

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
expenses.
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.

P&I covers:
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.