Unlike other traditional insurances, P&I insurances (usually referred as P&I Insurances) are provided by P&I Clubs which are non-profit associations based on mutual collaboration. These Clubs are formed by ship owners, managers and charterers who are willing to embrace and share the risks of international marine trade. P&I Clubs work with the common pool which is generated by the premium they collect from their members and these premiums vary according to coverage they provide each member with the policy.

Protection and Indemnity Insurances are forms of marine insurances providing protection in relation to Club’s members’ liabilities arising against third parties which are not covered by the vessel’s hull & machinery insurance. On the other hand, Clubs’ only function is not helping its members with their financial liabilities; they also guide and assist their members in the claims when liabilities are in question.

As a liability insurance, P&I insurances offer a wide range of coverage to insured; liabilities to crew, passengers, cargo loss or damages, liabilities arising from collisions, pollution, damages to fixed and/or floating objects, liabilities due to injuries/death of crew, passengers, third parties and many other liabilities which insured may encounter. Coverage of each P&I policy can vary according to insured’s needs.

P&I insurances are crucial for insured who are trading in international waters not just because of being mandatory in many key regions, it’s also because of the huge risks vessels can face on waters. The ones which may not be able to compensate by themselves. Support and collaboration of P&I Clubs make these risks bearable for members.

P&I Insurances became mandatory for the vessels having a gross tonnage of 300 or greater which are entering or leaving the port facility within the Turkish territorial waters with The Regulation on the Insurance Coverage and Inspection of the Vessels for the Maritime Claims which has been published in the Official Gazette numbered 27759 dated November 14th , 2010.

As a country who has become one of the major players in international trade lately significant amount world’s trade passes through Turkey. Keeping in mind its strategic geopolitical location and a growing economy, it is not hard to tell that volume of maritime trade in Turkey will continue to grow and Turkey will benefit from having its own P&I Club. Currently Turkey doesn’t have its own P&I Club yet, but works have been started to establish Turkish P&I Club.