P&I 
H&M 
FD&D 
Charterers Comprehensive Cover 
Marine Delay Insurance LOSS PREVENTION
LP 12/2024 Timeline to Reopen Port of Baltimore Remains Uncertain
USCG has verbally advised that it will be a minimum of 2 weeks before any port movements resume, however, most suspect the delay will be much more prolonged.
LP 05/2024 Turkey Intensified Penalties for Drug Smuggling
It is common practice in Turkish jurisdiction to consider crew members as suspects of the crime if drugs are found on board.
LP 02/2024 Increased Tariff for Pollution at Sea in Turkey in 2024
The tariff for pollution incidents in Turkiye has been revised with the rates to be applied in 2024 increased.
2023-09
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Loss Prevention
Condition Survey
The Association introduced the Entry Condition Survey Program and Ship Visit Campaign in the 1990’s as part of the underwriting quality control, risk management and loss prevention process, and has subsequently implemented a number of mechanisms and trigger factors that enable the Association to initiate pre-entry or post-entry condition surveys on vessels.
The ship condition survey program has played an important role in the control of the underwriting quality and at large, it helps the members in their loss prevention and to minimize their insurance costs by keeping good loss records. With the implementation of the ISM in the last two decades, the shipping industry put forward much higher standard to ship’s safety and environmental protection capability, which has given rise to a requirement to extend ship condition survey to all vessels that are subject to condition survey, either for entry condition survey or random survey as per relevant rules of the Association.
The Association’s condition survey generally focuses on shipboard safety management, structural integrity, pollution prevention capability, cargo worthiness, etc., to identify any defects or deficiencies that may give rise to concerns. In the meantime, it will also help underwriters evaluate if a vessel meets the Association’s entry requirements in terms of the physical condition of the ship, shipboard and shore-based management level, the quality of manning, etc.
In recent years, the condition survey program pays more attention to vessels listed by the PSC inspection, following up on the final rectification of any outstanding issues. By way of condition survey, the Association will be able to assist the members to identify deficiencies and defects which are likely to expose themselves and the Association to risks and claims, then provide members with appropriate recommendations for rectification or maintenance.
Please always refer to the Association’s “Circulars” under “Publications” relating to condition survey or click “here” for more details.
Training
To better meet member’s needs, the Association is pleased to arrange training programs for member’s personnels regarding claims handling process, critical points in dealing with certain types of cases and how to avoid or to minimize the occurrence of certain types of incidents.
The Association also organizes training program for Members on important issues such as carriage of nickel ore, oil pollution prevention and compensation.
Seminars
The Association organizes seminars for members every year. Experts from maritime courts, maritime safety administrations, universities and law firms will be invited to give lectures on prevailing issues or topics of common concern. The seminars provide opportunities for members to exchange opinions and raise loss prevention awareness.
Advisory Service
The Association publishes loss prevention circulars and articles regularly through the Wechat Official Account and email subscriptions. Topics range from navigational safety, technical and legal issues, as well as international politics. These articles provide up-to-date advices to members and enhance the prospective and specialty of the loss prevention work.
Claims
Claims handling services
We provide comprehensive claims handling services for our member. Graduated from high-ranking maritime universities, our claims teams are familiar with laws, regulations and international conventions relating to shipping industry, and have rich experience in handling all kinds of claims, including personal injury and illness, cargo liabilities, collisions, pollution wreck removal, etc. Our claims teams are always ready for emergency response in significant maritime accidents. In conclusion, China P&I Club strives to offer a 24/7 professional and efficient claims services around the globe to our Members, with a worldwide network of correspondents, lawyers, and experts.
Upon receiving new claims from Members, our claim staff will quickly analyze the case first, and then appoint local correspondents or surveyors to investigate the accidents on site and assist in collecting the relevant evidence. If necessary, we will engage experts specialized in fire, chemistry, oil pollution and collision accidents into the investigation, in order to determine the cause of the accident and the extent of loss. Based on the evidence collected, our claim handlers will assist Members in starting settlement negotiations with claimants at appropriate time. Sometimes, we would seek professional advice from lawyers or experts. Our aim is to minimize the compensation and protect member’s interests. If a settlement agreement could not be reached and the claim went to court or arbitration, the Club will instruct professional lawyers to respond to the legal proceedings on behalf of Member, and defend the case according to local laws and international conventions.
We also offer consultant service to our members in both claim handling and legal aspects of personal injury and death, bill of lading, charter party clauses, and other hot legal topics in marine sector.
Innovative Mechanism of the Vessel Release from Judicial Arrest
In 2020, China P&I Club signed a MOU (memorandum of Understanding) with the Shanghai Maritime Court, taking the lead in creating an innovative mechanism of the vessel release from judicial arrest. We provide the Shanghai Maritime Court with a list of our entered ships. When a claimant lodges an application to the Shanghai Maritime Court for the arrest of a vessel in the list, we will initiate the innovative mechanism, subject to the internal approval. The Club will provide LOU to lift the arrest immediately. Such mechanism could avoid the ship from being physically arrested. It has been recognized by the Supreme People's Court and highly appreciated by the Owners.
We have expanded the mechanism in China by signing MOUs with other maritime courts to further promote the service. We are dedicated to protecting the normal operation of our Members by providing vessel release services with zero gap. Innovative Mechanism of the Vessel Release from Judicial Arrest has been recognized as an important achievement at the 2023 North Bund International Shipping Forum and the 2023 Qingdao Free Trade - First Maritime (Judicial) Innovation Conference.
Marine Delay Insurance
Marine Delay Insurance
The Association launched a new class of mutual cover of Marine Delay insurance in 2022 to widen the diversity of insurance solution provided to its membership as part of one-stop-shopping service which is driven by market demand under new trend of shipping market development.
Our product
Marine Delay Insurance (MDI) protects members’ loss of income arising from ship delays caused under insured risks. The coverage of MDI is consisted of onshore risks and shipboard risks, covering most of income losses from unexpected risks that may be encountered during ship managing and operating. To serve that purpose, MDI cover is designed with great flexibility and widens of the cover on tailor made basis – Members might select relevant covers of risks under either Shipboard or Onshore (or both) to meet their risk management demands. MDI cover provides complementary effects in addition to Members’ P&I and H&M covers to enjoy protection on their balance sheet to avoid uncertainty in budget of income and their cash flow. However, the cover can be purchased on stand-alone basis despite of the fact whether the Member has ships entered into the Association for P&I or H&M cover.
Coverage of Marine Delay Insurance
Onshore risks: financial impact of delays caused by onshore strike, war, onshore fire, onshore explosion, mechanical breakdown, heavy weather, physical obstruction, cyber risk, political issues, etc.
Shipboard risks: financial impact of delays caused by onboard strike, war, collision, grounding, contact FFO, heavy weather, illness/injury/death of crews, pollution, stowaways, piracy, off-spec bunkers, action of authorities, etc.
P&I
Our Service
China P&I Club is the largest P&I insurer in China, and provides members with excellent underwriting quality as well as an advanced data analysis system which delivers timely pricing. CPI Blue Cards, Certificates and LOUs are accepted at major ports and countries around the world. The Association has commercial relationships with 6 major IG Clubs.
The Association is committed to providing professional, timely and efficient claims service to members. The claims team has extensive claims handling experience, works closely with members, and always puts members’ interest first. Our claims team is experienced in handling various types of claims such as pollution by oil and other hazardous substances, death, illness, or injury to crew and other passengers on board, cargo liabilities, collision and damage to dock and other property and installations, wreck removal and fines. The claims team and loss prevention team respond immediately to major marine casualty or accident.
In addition to claims handling, the Association also provides members with a wide range of services including consulting on legal issues and loss prevention.
Scope of Cover
The Protection and Indemnity coverage provided by the Association includes:
1. Loss of life, personal injury and illness of crew and passengers on board;
2. Cargo liability;
3. Pollution risk;
4. Wreck removal;
5. Collision & damage to fixed and floating objects;
6. Fines and penalties, crew repatriation and substitution, towage liabilities, etc.
H&M
The Association’s Marine Hull facility was set up in 1998 under the approval of the Association’s Board of Directors. The initiation of the Hull facility marks the shift of the Association’s emphasis from traditional P&I to a diversified business portfolio in order to meet the demands of the members for One-Stop Service and seamless insurance coverage. The Hull facility provides wide coverage for marine risks (H&M, Disbursements and War Risks) in addition to the traditional P&I covers to members, providing them with more options to streamline their insurance arrangement and narrow any gap that may exist in their insurances.
Hull Covers are offered to members on a mutual basis either stand-alone or as a package in order to address members’ diverse needs and requirements.
Our Products
On the principle of mutuality, the Association, in addition to its traditional P&I covers, offers Hull & Machinery insurance based on standard hull conditions, Increased Value and War Risks conditions according to the usual Hull Clauses in the Association’s Rules, and the scope of coverage is identical to PICC 86 Clauses. The Association has also been flexible on the hull clauses by adopting widely recognized conditions such as Institute Time Clauses, PICC Clauses (for worldwide and coastal trading vessels) tailored to meet individual member’s needs.
Our Business Philosophy
Mutuality; Reliability; Stability; Professional; One-Stop Service.
Mutuality: the Association’s Hull & Machinery business operates on the distinctive principle of mutuality with a strong commitment to minimizing members’ insurance costs for their best interest.
Reliability: The Association’s introduction of Hull & Machinery business will on one hand strengthen the Association’s financial position and on the other hand provide reliable insurance products for the members. The reliability is also evident in the Association’s reinsurance coverage and its selective policy on reinsurance partners’ rating and usual credit control.
Stability: Not only is the Association’s financial position stable, its Hull & Machinery business strategy has also been designed to minimize the effect of market fluctuation on the members. The Association has also been highly selective on the investment projects and the pace of its business developments when building up the reserves;
Professional: The Association specializes in marine insurance and consequently concentrates management, members training, product design and customer service in the field to provide comprehensive insurance solution and exceptional service to the members.
One-stop Service: The one-stop service is reflected in the scope of cover and claims handling where both P&I and H&M elements are involved in a single casualty. In order to better protect member’s interests, the one-stop service will try to minimize any insurance gap or shortfall and effectively avoid disputes which may arise in case of a marine casualty when different insurers are involved.
Our Service
The Hull & Machinery team consists of maritime university alumni who either have seafaring experience or legal background. The Association, staffed with such a specialized team, can provide personalized insurance to meet Members’ individual requirements based on their loss records and fleet trading patterns as well as internal management. The Hull & Machinery team also provides loss prevention advisory service for specific issues based on information received from its correspondents network and any other external resources. All types of service is available to Members 24/7 with the assistance of in-house professionals, international correspondents, surveyors, lawyers and salvage teams. The Association’s Letter of Undertaking is recognized globally by claimants, and had helped members to release their vessels detained by authorities or arrested by claimants in the past.
Loss prevention is another distinctive feature of the Association. Loss prevention not only includes entry condition survey to control underwriting quality but also includes onsite training, seminars and regular e-bulletins posted through WeChat Official Account and the CPI website.