Momentarily there are no requirements that a ship-owner need to have a compulsory P&I-insurance. However, there are three directives that require ship-owners of certain vessel types to have an insurance that covers the liability needed by said insurance directive. A P&I insurance is the liability insurance best suited to cover the liability mentioned in these directives.
The Bunker Convention
The convention came into force in 2008 and requires that all vessels over 1000 GT must have an insurance that will cover the ship owner’s liability in respect of pollution caused by bunker oil.
Directive 2009/20/EC of the European Parliament
The directive applies since 1.1.2012 in the whole of the European Union and demand that all ship owners with a vessel over 300 GT shall maintain insurance to cover maritime claims subject to limitation under the Protocol of 1996 to Amend the International Convention on Limitation of Liability for Maritime Claims (LLMC) and up to the relevant maximum limits laid down in it. The directive also requires that this cover is evidenced by a certificate or certificates of insurance that shall be kept on board the ship.
The Athens Convention
The convention was updated 31.12.2012 to require all passenger vessels registered to carry 12 or more passengers that trade internationally or nationally in trading area A or B (in Finland and Sweden) to maintain insurance that covers the ship owner’s liability in respect of passenger liability under the convention. The convention may be expanded to also include national trading areas C and D. For more information, please read our information on the Athens Convention in our library.
The Wreck Removal Convention
The wreck removal convention enters into force 14.4.2015. Shipowners with a vessel of 300 GT or more and that is flagged in a member state or that is entering a port in a member state must obtain an insurance for the liability according to the convention. The P&I insurance covers the shipowner’s liability for wreck removal. As a proof of a valid P&I insurance, Alandia Marine issues a blue card to the shipowner. As a proof of a valid P&I insurance, Alandia Marine issues a blue card to the shipowner. The blue card is attached to the certificate application to the maritime authority. The certificate is to be kept onboard the vessel.