Purpose of Marine Insurance Marine Insurance is an agreement whereby the insurer indemnified the assured in manner and extent provided, against losses incidental to marine adventure. Spreading of Risk - If a loss occurs, the insured will be put back into the same financial position as just before the loss. The insured must not profit from the loss. Aid to Security - This removes the uncertainty of a potential financial loss. Individuals and businesses are freer to expand without the need to set aside for reserves for the future. Aid to Credit - Loans are not advanced unless the … [Read more...]
Protection & Indemnity Clubs
What is a P&I club? The roots of the Protection & Indemnity Club or a P&I club were founded in 18th century England. Those were the days of sailing ships and extremely slow and inefficient communication system. Ship owners and the underwriters had limited contact and the hull insurance did not cover all aspects of loss on board. A group of ship owners formed an association to provide each other insurance cover. This association was a non-profit making body controlled by a group of close-knit ship owners. These associations were named as Mutual Hull Insurance Clubs. The basic … [Read more...]
