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

Topics to be discussed

• Cover

• Cases

• Major Spill

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:

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

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

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

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…”

Pollution Cover

• Examples of risks covered under pollution rule:

• Property damage

• Consequential damage

• Pure economic loss

• Preventive measures

• Damage by preventive measures

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

Cases

• Marpol infringements• Garbage• Sewage• Air pollution• Minor spills• Major Spills