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Pollution from Ships
The Role of the P&I Club
Nautical Institute London and Solent BranchMaritime Excellence Programme
Southampton 9th-10th November 2007Michael Bowen
Thomas Miller P&I Ltd
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Topics to be discussed
• Cover
• Cases
• Major Spill
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What the P&I Clubs Give Members
• Insurance cover
• Claims handling assistance
• Worldwide correspondents network to assist with
problems
• Guarantees to release arrested ships
• General Advice
• Loss Prevention advice
• Statistical Data
• International Representation
The Clubs give their Members:
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Cover
• P&I Insurance is:
• insurance of ship-operators in respect of 3rd party liabilities arising from the ship
• Clubs are indemnity insurers
• Principle of “pay to be paid”
• CLCs are an exception to “pay to be
paid” rule
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Clubs guarantee liability under CLCs
• Unbreakable limit
• Owner’s defences, plus owner’s wilful misconduct
• Policy defences of Clubs are abandoned under the
Convention’s compulsory insurance requirement
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P&I Cover
Third Party Liabilities in respect of :-
Loss or damage to cargo
Injury, illness or loss of life of passengersInjury, illness or loss of life of crewPollution damageCollisionProperty DamageFines
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Club Cover for Pollution Risks
• A typical rule on pollution cover would say
“liabilities, losses, damages, costs and expenses
incurred as a consequence of the discharge or
escape from an entered ship of oil or any other
substance or the threat of such discharge or
escape…”
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Pollution Cover
• Examples of risks covered under pollution rule:
• Property damage
• Consequential damage
• Pure economic loss
• Preventive measures
• Damage by preventive measures
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Fines
• Imposed on owners or• Person to whom owner may be legally liable• In respect of accidental discharge or escape of
oil or other substance provided not arising from overloading or Marpol violations re construction, adaptation, equipment
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Cases
• Marpol infringements• Garbage• Sewage• Air pollution• Minor spills• Major Spills
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