HOW A SHIPOWNER CAN GET P&I INSURANCE

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When a shipowner/ shipping company requires P&I insurance for a ship, the club underwriter will ask for information so that he can make a risk profile of the vessel. The underwriter is trying to understand what sort of risk or risks the vessel represent in its current trading pattern. So, the shipowner has to provide the following information to the underwriter:-
1) The tonnage of the ship in GT( Premiums are expressed in USD/GT)
2) year of build
3) Number of crew members
4) Type of vessel
5) Type of cargo to be carried
6) Areas of trading
7) Liner trade or tramp
8) Classification society
9) Management expertise
10) Compliance with national or international legal requirement
11) Number of ships in company
12) Previous P&I history
         After getting all these information the underwriter assesses the risk and calculate a fair rate or premium. The premium should represent a fair charge to cover the risk involved and to make sure that the other members of the club do not have to subsidize or  lose benefit as a result of new entry.
     Now the club will make a company audit with the management. This adds valuable information for the club underwriter. In addition club will often require a survey of one or more ship in the new fleet to ensure the quality and technical standard of ship. So, the owner should keep their ships in good condition and should abide by the club's rule. Entry into club is often dependent upon the ship being found satisfactory on inspection. Once the ship is accepted for entry into the club, a certificate of entry will be issued. This will be the evidence of P&I insurance which has to be shown in most ports.

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