The International Group of P&I Clubs, or IG P&I, is a coalition of thirteen insurance clubs that provide liability insurance to ship owners and operators. The IG P&I clubs have been in operation since 1978, providing coverage and support to ship owners and operators around the world.
One of the most significant agreements that the IG P&I clubs have entered into is the pooling agreement. The pooling agreement was established to provide a more comprehensive and cost-effective insurance option for ship owners and operators.
The pooling agreement works by combining the resources and expertise of all thirteen IG P&I clubs. Under the pooling agreement, each club retains its own identity and independence, but they share their resources, expertise, and risks. This allows the clubs to offer a wider range of coverage options and to better manage risks, resulting in lower costs for ship owners and operators.
The pooling agreement also provides a system of mutual assistance. In the case of a large or catastrophic claim, the IG P&I clubs can draw on the resources of the other clubs to pay the claim. This helps to ensure that all members of the IG P&I clubs have access to the necessary resources to cover any losses.
The benefits of the pooling agreement extend beyond its cost-effectiveness and mutual assistance provisions. The agreement also provides for consistent and uniform coverage across all thirteen clubs, making it easier for ship owners and operators to understand and manage their insurance coverage.
The pooling agreement has been a significant development for the IG P&I clubs and the shipping industry as a whole. By working together, the clubs have been able to offer a more comprehensive and cost-effective solution for liability insurance, while also providing a reliable safety net for catastrophic claims.
In conclusion, the pooling agreement of the International Group of P&I Clubs is a significant development in the insurance industry, providing a comprehensive and cost-effective solution for ship owners and operators. The agreement`s mutual assistance provisions and consistent coverage options make it a valuable resource for the shipping industry, ensuring that all members of the IG P&I clubs have access to the necessary resources to cover any losses.