For decades, the idea of creating Indian Protection Club (P&I) Appeared in the transport circles.
Some have enthusiastically supported it, others have criticized it, while many are balanced.
But what does this really mean for ship owners, operators and wider maritime community in India?
Why P&I covers issues
Shipowners face two main types of debt:
- Contractual debtA: These are made in accordance with contracts or laws such as compensation for sailors or cargo damages under laws such as Hague Wisby or laws such as COGSA 1971.
- Torture debt: These are due to accidents and actions that cause damage or loss of others – for example, pollution, collision or damage to port infrastructure.
P&I clubs traditionally cover such debts. They work on a cross -insurance system where ship owners have pool resources, managed by professional enterprises and common hazards.
Today, 12 major clubs cover more than 90 % of the world’s fleet through the International P&I Club Group, with support for extensive reinsurance.
Indian efforts so far
India has been exploring the idea for more than 40 years. In 2016, Captain JC Anand pioneered the initiative with the New India Assurance to provide liability insurance based on fixed premiums. While this cover was provided for some ships, it was not completely off.
Recently, the general manager of India’s transportation conducted a feasibility study on the formation of an internal P&I club. The government views this as a way to reduce dependence on international clubs and minimize exposure to global sanctions, especially given oil imports and geopolitical change.
Fixed premium clubs in front of reciprocity
A fundamental distinction in this discussion between:
- Cross Clubs: Belonging to ship owners, who operate in non -profit, with “flexible” but potentially (pay) “call”.
- Fixed premium insuranceA: Like ordinary insurance with predictable annual premiums, it works proportional to smaller and medium -sized ships.
For Indian ship owners, especially smaller coastal and domestic fleet, fixed premium coverage may be more practical. This prevents heavy membership commitments while still preventing comprehensive and often $ 500 million support.
The challenges ahead
Creating a P&I club on a full -scale Indian scale will not be easy. Some obstacles are:
- Supervisory restrictions: Current IRDA rules do not support mutual structures without reform.
- Fleet size: Indian controlled tonnage is relatively average compared to countries that host large clubs.
- International acceptanceA: Any Indian coating must be recognized under international conventions (such as the Convention on Civil Liability and Removal) to be valid worldwide.
Without this knowledge, Indian wrestlers only rely on a domestic club.
The way possible
Instead of trying to reproduce a traditional reciprocal club, experts suggest creating the power of Indian insurers such as supporting and supporting the new Indian insurance for GIC RE, the 10th largest insurer worldwide.
India with the first focus on smaller ships – coastal transport and domestic fleet – India can provide a sustainable liability insurance model. Over time, this can expand to larger ships and recognize international cognition.
End
Discussing whether India is Can Create a P&I club, but that’s I have toHuman beings, with the change in world trade dynamics, sanctions, the growing danger and urgent need for “Atmanirbhar” solutions, India must balance the ambition with a balance.
Currently, strengthening fixed premium insurance insurance through participants in India may be faster and faster.
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Full article by Dr. Brjendra K Saxena for accurate analysis, historical context and policy recommendations.
About Dr. Brjendra K. Saxena
Dr. Brjendra K. Saxena is the founder of the retired of the Toyan Maritime Institute, where he has led marine engineering and marine education in India for more than 25 years. He also taught a former senior engineer and chief executive of the Indian Transport Company at the Swedish World Maritime University.
After more than five decades in maritime education and education, he continues to serve as a consultant, a thought leader, and a valuable member of the International Maritime Commercial Society (Amicie).
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