Protection and Indemnity (P&I) Insurance: Mutual Clubs, International Group pooling, cover, exclusions, claims conditions, 'pay to be paid', FD&D, and the Insurance Act 2015

Published by a LexisNexis Insurance & Reinsurance expert

Practice notes

Nature and purpose of P&I insurance

Protection and indemnity (P&I) insurance is a niche liability policy purchased by shipowners, certain charterers, and others involved in the commercial running of deep-sea vessels. Its core role is to compensate shipowners for third-party claims and to bridge gaps where other marine policies, including hull and machinery or war risks covers, do not respond. To call at or depart from most ports worldwide, ships—or at least those above defined minimum tonnages—must hold liability cover or comparable financial guarantees for specified classes of claims. In practice, merchant fleets meet these obligations through P&I cover. P&I insurance is, therefore, an essential partner to international trade.

P&I Clubs and the International Group of P&I Clubs

P&I insurance traces its roots to the 18th and 19th centuries, when shipowners formed associations to mutually insure exposures left outside the scope of the conventional marine insurance market. While some protection is now offered on a fixed‑premium basis, the majority of modern P&I protection is provided on a mutual, non‑profit footing by P&I ‘Clubs’. Although fixed‑premium arrangements are available, mutual underwriting prevails, with cover placed on a non‑profit basis through these Clubs, reflecting their origins in cooperative shipowner associations historically. Some...

To view the latest version of this document and thousands of others like it, sign-in with LexisNexis or register for a free trial.

Jeffrey Thomson

Gatehouse Chambers

Jeffrey is a barrister and legal academic, specialising in marine, energy and construction (re)insurance, and shipping / maritime law. He worked for several years as a member of some of the London Market’s leading marine and energy insurance disputes teams. At Gatehouse Chambers, he advises on coverage, subrogated claims and liability defences, in connection with marine, war risks, aviation, business interruption, construction, product liability, and professional indemnity insurances. He is a contributor to several editions of Construction All Risks Insurance and Construction Professional Indemnity Insurance (both by Paul Reed KC), and Insurance Broking Practice and the Law (CMS Cameron McKenna Nabarro Olswang LLP and Gatehouse Chambers). At The City Law School, he leads the Maritime LLM programme’s Admiralty Law and Marine Insurance modules. His research focuses on English maritime and commercial law, both historical and present-day....

Web page updated on 21/05/2026

Popular documents

Using the Judicial College Guidelines to assess general damages in personal injury claims

When evaluating a general damages claim, the practitioner ought initially to refer to the Judicial College Guidelines (JCG)...

Tomlin orders in England and Wales: CPR guidance on drafting, confidentiality, approval, variation, enforcement, limitation, CCA issues, court-specific requirements, sample wording and precedents

This Practice Note This Practice Note reviews mechanisms used in settling litigation. A Tomlin order consists of a consent order paired with a schedule. It operates to stay proceedings on terms that have been agreed. The provisions contained in the schedule may remain confidential. This Practice Note describes the scope of confidentiality attaching to the schedule and sets out how it differs from a standard consent order. Sample wording for a Tomlin order is included, alongside links to precedents, as well as guidance on court approval. It also addresses varying, setting aside and enforcing a Tomlin order, including the considerations the court will take into account when handling applications for each. Further guidance is provided on interpreting and applying the relevant provisions of the CPR; however, some courts and divisions impose very specific requirements for both drafting and approval, and for approaching the schedule and confidentiality issues. Accordingly, you must consider the particular rules and court guide provisions in the forum where your claim is proceeding when drawing up the Tomlin order...

Precedent: Deed of Surrender of Lease with Optional Premium, Settlement and Release, Landlord, Mortgagee and Guarantor Consents, Reimbursement and HM Land Registry Provisions (England and Wales)

Date [ date ] Parties [ name of Landlord ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Landlord) [ name of Tenant ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Tenant) [ [ name of Guarantor ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Guarantor) ] [ [ name of Mortgagee ] [ of OR incorporated in England and Wales (company registration number [ number ]) with its registered office at ] [ address ] (Mortgagee) ] Definitions Within this Deed, the terms below shall be interpreted as follows: [ Annual Rent • the annual sum reserved under the Lease; ] [ Insurance Rent • the Tenant’s share of the Landlord’s costs of insuring the Property (as set out in the Lease); ] Lease • the lease of the Property dated [ date ], entered into between (1) [ the Landlord OR [ name ...

Precedent Statutory Declaration: Standard Wording under the Statutory Declarations Act 1835

I, [ name ], of [ address ], solemnly and sincerely state that: [ Matters to be verified, set out in numbered paragraphs ] I make this solemn statement in good conscience, believing it to be true, and pursuant to the provisions of the Statutory Declarations Act 1835. DECLARED at [ details ] this [ day ] day of [ month and year ] Before me ................................................................................ [ signature of the person before whom the declaration is made ] A [ commissioner for oaths OR [ solicitor OR [ insert other qualification ] ] authorised to administer oaths ]...