Company Operational Manual(COM) Insurance 5.2 P & I Claims	Doc No.: COM 5.2 Revision: 1 Date: 15 Oct 2024 Issued by: DPA Approved by: MD

1 APPLICATION

This document applies to Owner, Marine Superintendent/Manager, SMO, Insurance, Broker/Insurer, and Vessel Accounting (VA).

2 PURPOSE

This document is an overview of the Protection & Indemnity (P&I) claims process. P&I insurance covers the legal liabilities of the Owner towards third parties for the following main categories:

• Crew
• Collision
• Fixed and floating objects
• Third party injury and death
• Oil pollution
• Cargo
• Miscellaneous (e.g. fines, wreck removals etc.)

Instructions related to the Master can be found in FOM-6.3 Insurance.

3 P&I CLAIMS PROCESS WORKFLOW

3.1 General

The workflow for this process is illustrated in Figure 1 below.

Figure 1. P&I Claims Process

4 RESPONSIBILITIES WITHIN THE WORKFLOW(S)

Function	Responsibility
Owner	Approve and/or comment on the claim settlement to third parties
Insurance Manager/Claims Handler	Advise VM of the terms and conditions of the P&I policy and deductible quantum Coordinate with P&I claim handler till settlement of the case
P&I Club Claims Handler	Deploy P&I surveyor to conduct damage survey and assist Master to deal with the authorities, claimants, etc.
Vessel Accountant	Opening and closing of claim pending number

5 INSURANCE DEPARTMENT ACTIVITIES

5.1 Advise terms and conditions of the policy

Insurance Department shall advise the Marine Superintendent/Fleet Group on the deductible quantum applicable etc.

5.2 Claim file creation

Insurance Department shall:

• Open a file for the claim
• Inform VA to create a claim pending number and copy parties concerned

5.3 Claims handling

Insurance Department shall:

• Handle the claims till closure in liaison with the P&I claims handler
• Inform VM to obtain ship’s documents etc. to support the defence of the claim and to mitigate the loss

5.4 Claims Settlement

Insurance Department shall comment and approve on settlement proposal by the Club and seek the concurrence of Owners.

5.5 Closure of claim file

Once the case is settled, Insurance Department shall:

• Close the claim file
• Inform the VA to close the pending account
• Inform Club to do likewise

6 P&I CLUB ACTIVITIES

6.1 Damage survey

The P&I Club shall ensure that the P&I surveyor issues the preliminary survey report soon after inspecting the damage, followed by the formal survey report.

6.2 Claims handling

The P&I Club shall:

• Obtain pertinent data/documents from ship and shore through the Insurance Department to defend the claim
• Negotiate with claimants to settle on best settlement terms
• Advise Manager/Owner on settlement proposal

6.3 Claims settlement

Once approval to settle obtained, P&I Club shall:

• Pay the claim in exchange for a receipt and release
• Ensure that the deductible is paid and correspondent/surveyor’s fees are settled prior to closing the file

7 VESSEL ACCOUNTING ACTIVITIES

7.1 Create claim pending number

Vessel Accounting shall create claim pending account number upon request by Insurance Department as advised by Marine Superintendent.

7.2 Payment of deductible

Vessel Accounting shall settle debit note as raised by the Club.

7.3 Claims closure

Vessel Accounting shall:

• Close the pending account as advised by the Insurance Department
• Forward closure notice once completed