Get Quote alt-image
Need Help?
Request a Callback from Us
Thank you for showing interest.
Enter your contact details to proceed.

  • image
  • Thank you!

    We are always available to resolve your queries! You will receive a callback from us.

The time slot chosen for you is 9th March, between 10AM - 12PM

back Back to Blogs

What is Marine Protection and Indemnity (P&I) Insurance?

Posted on 04 April, 2022
  • Share on
  • icon
  • icon
  • icon

Ship owners need to be mindful of many perils their vessels are subjected to during operations. Along with ensuring financial protection in case of damage to cargo or the ship, they also need to consider potential lawsuits should their ship cause damage to a third party. Equally essential is to remain guarded against legal actions from crew and passengers.

While a marine insurance policy safeguards ship owners financially if their ship suffers physical damages, marine protection and indemnity insurance protects them from third-party liability risks. It is one of the essential marine insurance coverages offered, the others being hull coverage and cargo insurance.

Marine Protection and Indemnity Insurance

The Need for Marine Protection and Indemnity Insurance

Ship-owners, today, require coverage beyond traditional ones. They are exposed to a range of unique third party liabilities that could result in expensive lawsuits. Settling them can pinch finances hard. Therefore, ship owners need to have this coverage for comprehensive protection.

For example, an oil spill from a ship can cause environmental damages worth several lakh dollars, resulting in many civil lawsuits. Deaths to passengers and crew members because of accidents or illnesses may also lead to settling expensive claims and paying for medical expenses. Hence, as a vessel owner, you need to be financially prepared to face such liabilities.

Coverage Under Marine Protection and Indemnity Insurance

Loss of life, illness or injury to crew member and passengers

Marine protection and indemnity insurance will help you settle claims arising due to loss of life, illness or injury to the vessel’s crew members and passengers. In the past, many cases of crew members and passengers losing their lives or injuring themselves on ships have come to the fore resulting in expensive litigation for ship owners.

Medical expenses

Treatment of injured crew members and passengers can be an expensive affair. Marine protection and indemnity insurance can help ship owners bear these costs to some extent.

Age of Employees

Age is a critical factor while buying health insurance, and group health insurance policy is no different. Risk increases with age as the body becomes vulnerable to several ailments. If the employees’ age is on the higher side, you need to pay a higher premium towards the plan.

Damage to other vessels

If your vessel accidentally causes damage to another ship, the other ship-owner can sue you. However, marine protection and indemnity insurance can help you pay for the damages and cover the legal cost.

Along with these coverages, this insurance policy also covers costs for removing wrecks, repatriation of crew members, wars and political risks, among others.

Read the Policy Documents to Know the Exclusions

Like marine cargo and inland marine insurance have exclusions, this policy also has a few exclusions. The policy will not cover risks under a worker’s compensation policy or a collision clause under a hull insurance plan.

Conclusion

As evident, marine protection and indemnity insurance provides coverage against a range of third party liabilities. Purchasing it can help ship owners fortify their coverage significantly. It’s wise to compare multiple plans before buying and choose the one that best fits your needs.

  • Marine Insurance
  • Product Code: 2005
  • Product UIN: IRDAN115P0011V01200102

Help us know you better!

This contains only an indication of the cover offered. For complete details on risk factors, terms, conditions, coverages and exclusions, please read the sales brochure carefully before concluding a sale.ICICI trade logo displayed above belongs to ICICI Bank and is used by ICICI Lombard GIC Ltd. under license and Lombard logo belongs to ICICI Lombard GIC Ltd. ICICI Lombard General Insurance Company Limited, ICICI Lombard House, 414, Veer Savarkar Marg, Prabhadevi, Mumbai – 400025. . IRDA Reg.No.115. Toll Free 1800 2666. Fax No – 022 61961323. CIN (L67200MH2000PLC129408). customersupport@iciclombard.com. www.icicilombard.com. (Marine Insurance, 2005 , IRDAN115P0011V01200102)