Change ahead on liability

David Semark, of Quadrant Chambers, considers direct liability under international convention certificates and the UK’s Third Parties (Rights against Insurers) Act 2010

Traditionally, mutual P&I cover has been regarded as first-party indemnity insurance, rather than liability insurance. The key feature distinguishing P&I insurance from other forms of marine insurance is the ‘pay to be paid’ provision universally found in the rules of the P&I Clubs. Members of mutual P&I Clubs are not entitled to be indemnified by their club unless the members have first discharged the liabilities in question.