Introduction to P&I Clubs and insurance1

3.1 Third-party liabilities to which the global shipping industry is exposed are insured primarily by mutual Clubs (Associations) that are members of the International Group of Protection and Indemnity Clubs (IGP&I).2 Collectively the 13-member Group Clubs insure about 90% of the global shipping fleet.3 They are geographically dispersed around the globe with one domiciled in the USA4 and Japan,5 respectively, three in Scandinavia,6 and the remainder in England.7 In this chapter the focus is on Group Clubs domiciled in England, and to avoid unhelpful repetition and excessive technicality, the Rules of the North of England Club (hereafter “the Rules”), when the occasion arises, are cited as illustrative of the general position adopted by the English Clubs in relation to Class 1 Protecting and Indemnity insurance.8 The individual Group Clubs act as independent, not-for-profit, mutual insurers and provide liability insurance in a competitive environment, even as between each other.9 By contrast the IGP&I is a distinct corporate entity that