Are there insured values or limits of liability to evaluate under a P&I insurance?
Group P&I Clubs provide P&I cover subject to standard limits of liability as follows. – Oil pollution – US$ 1 billion per occurrence. – All Other claims – US$4.25 billion per occurence. This limit of liability may be reduced to US$5 million if considered necessary by the P&I Club due to the nature of the trade or the vessel is not classed with an IACS class society. Group P&I clubs may not be agreeable to any other variants on limits of liability. There are fixed premium P&I insurers who can offer other variants of limits of liability which are lower than the limits under the Group P&I Club cover. As a guidance the limit of liability which you should insure under the P&I cover should be sufficient to cover the vessel’s maximum liability to claims calculated with reference to the vessel’s legal limitation of liability.
