Liability Cover In Marine Insurance: P&I Perspective

Protection and Indemnity Associations also known as P&I Clubs are the result
of long time development from Mutual Hull insurers in England.
One of the principles of these Clubs is to insure liabilities
not covered by the Hull & Machinery policy

Cover for liabilities not covered by hull and machinery policies in marine insurance is generally provided on a non-profit basis by Protection and Indemnity Associations also known as P&I Clubs which are based on mutuality.

The story behind these Clubs comes from the 18^th century in England, with The Bubble Act of 1720 which prevented corporations to engage in the marine insurance business unless duly authorized by Act of the Parliament or Royal Charter thus creating a monopoly for two companies. The Bubble Act allowed individuals to insure marine risks. This facilitated the formation of the Lloyd's insurance market but also individual shipowners organized and established mutual clubs or associations to