P&I Insurance: What It Covers for Crew
P&I insurance is liability insurance for maritime risks connected with vessel operation. Unlike hull insurance or cargo insurance, P&I concerns liability: situations where vessel operation, a voyage, or an onboard incident creates costs or claims against the shipowner.
For a seafarer, P&I matters because it may relate to the shipowner’s liability towards crew. The material on MLC 2006 describes shipowners’ financial security in connection with medical care, repatriation, and liability towards crew.
What can P&I cover for crew?
P&I may cover the shipowner’s liability towards crew and third parties for death, injury, illness, and repatriation costs (JobMarineMan). In practical terms, for a seafarer this may relate to situations such as:
- illness or injury during service;
- need for medical care;
- repatriation when the seafarer cannot continue work;
- claims or costs connected with death, injury, or illness;
- other costs arising from the shipowner’s liability towards crew.
P&I is not a seafarer’s personal policy. It is a mechanism for insuring the shipowner’s liability, so a seafarer’s specific rights should still be checked against the employment contract, collective agreement, and insurance coverage documents.
How is P&I different from personal insurance?
P&I insures the shipowner’s liability, while personal insurance is usually connected to the individual seafarer as the insured person.
| Type of protection | Who or what it protects | Typical logic |
|---|---|---|
| P&I | shipowner against liability towards crew and third parties | coverage of claims and costs |
| Personal Accident Insurance | the seafarer as an individual | payment under policy terms |
| Loss of Life Insurance | family or named beneficiaries | payment in case of death |
What should a seafarer check before a voyage?
Before joining a vessel, a seafarer should check whether the vessel has financial security documents and who provides the insurance cover. The material on MLC 2006 states that a vessel should have a Financial Security Certificate issued by a recognized P&I club or insurance company.
Ask to see the relevant documents, check the vessel name, shipowner, validity period, and contact details for incidents or claims. Also keep copies of your contract, medical documents, and correspondence with the crewing agency or shipowner. If a problem has already happened, record the facts in writing and seek help from a union or competent maritime organization.