b'12American Journal ofTransportation ajot.com(P&I CLUBcontinuedThe Group, composed ofthat Club manages the mattersuch as when there is a totalbases,searchesofsanctions from page 10) 12internationalP&IClubs,asitwouldanyotherclaimloss.Inlightofthis,unlikelistsproducedbysanctions memberoftheInternationalbetween them provide liabil- irrespectiveoftheexposureHull and War policies, thereregulators,andinvestigating GroupofP&IClubs(theitycoverforapproximatelythatmaybeinvolved.[if]are no excluded areas underthe ownership of entities and Group),andremainstodate,90%oftheworldsocean- the claim exceeds or is likelytheP&Ipolicy,subjectofpastactivitiesofprospective the only Club domiciled in thegoingtonnage.Likethetoexceedtheagreedreten- course to the regular negoti- covered vessels, among other US. The Club was founded inAmericanP&IClub,eachtionlevelwithinthePoolingated and trade specific termssafeguards. After rigorous ini-1917,asasolutiontosanc- Group club is an independent,Agreement,whichcurrentlyof a particular vessel. tial pre-entry vetting, policies tions imposed in the UK whichnot-for-profitmutualinsur- sits at $10 million, the GroupAnother attribute of theseare for one-year periods, with handicappedAmericancarri- anceassociation,providingis notified. There is a formulauncertain times, sanctions areworld-wide sailing conditions, ers from insuring with the thencoverforitsshipownerandwithin the Pooling Agreementalsoacommonplaceattri- subject to absolute exclusions existing UK based P&I Clubs.charterermembersagainstwhich dictates the contributionbuteofinternationalcom- for sanctioned or illegal trade. Even today the American P&Ithird party liabilities relatingbetween the Clubs which eachmerce.ThisisparticularlyDuringtheperiodofentry, Club remains the only Club intotheuseandoperationofyear is calculated based on ton- true in regard to Iran, Russia,vessels are subject to warran-the world subject to US sover- ships. As Ioannou explainednage, premium and loss recordNorthKoreaandthewide- ties of legality as well as peri-eignty. And the Club is the onlythefunctionalrelationshipand each Club will contributespread sanctions related to theodicmonitoring,andnotice mutual P&I Club domiciled inbetweentheClubs:Theaccordingly, as well as excessUkraineconflict.Intermsrequirementsforpotential the US and for that matter, inGroup operates with a claimscover through a collective rein- ofsanctions,whilethesesanctionedtrade.Ifinforma-the entire Americas. poolingandreinsurancesurance treaty. issues may have come to fore- tionislearned,orcomesto The day-to-day manage- structure which enables eachBesidespureaccidents,front in recent years for mostlight, of a vessel acting in a mentoftheAmericanP&Iclubtoprovidecoverwithgeo-politicaldisruptionshaveglobal insurers, it is not newmannernotconsistentwith Club is provided by Shipown- very high limits of liability atalsobeenamajorfactorintotheAmericanP&IClub,theClubscompliancepro-ers Claims Bureau, Inc. froma competitive price.maritimeincidents.Whenbothfromanoperationalgram, an investigation proce-headquartersinNewYorkaskedHowdoP&IClubsperspectiveaswellasfromdure is followed which entails with representative offices ini NciDeNts , c laims ,aND and specifically the Americanaguidancetomembershipdetailedresearchandcom-major shipping hubs of Hous- W arr isks P&I Club handle these com- perspective. In terms of guid- municationbetweenallpar-ton,London,Piraeus,HongWhen the AJOT asked, inplexchallenges?Ioannouance, the Club has an experttiesinvolved.Itisimportant Kong,Shanghai,aswellasrecentyears,therehavebeenreplied, Indeed, recent yearscompliance team which staystounderstandthatnocover Limassol,Cypruswherethesomenotableaccidents,thehave been plagued by muchabreast of the applicable sanc- exists,inotherwords,cov-ClubsEuropeansubsidiarylatest being the MV Dali alli- disruptionfromageo-polit- tions regimesto properlyerageautomaticallyceases, is located.sion with the Francis Scott Keyical perspective. In terms ofadvise the membership whenwhen vessels are in violation ButtheAmericanP&IBridge. How do these incidentstheHouthisattacks,claimschanges or developments mayofsanctions,includingbut Club is only one of a numberimpactP&IClubs?Ioannouthat might arise from this typeaffect the ability of the Clubnot limited to carriage of Ira-of P&I clubs located aroundoutlinedhowanAmericanof risk would fall under a sep- to cover certain types of trade.nianandRussianoriginoil theworld.NotsurprisinglyP&I and indeed all the mem- arate cover called WAR risksThe Club also updates mem- andpetroleumproducts(the theAmericanP&IClubbers of the Club would handleandareactuallyexcludedbersonreportingrequire- latter, in violation of the price concentratedondomes- an incident. The handling offromtraditionalP&Icovermentstoenablememberstocap regime agreed to by the ticbusiness.However,that-andparticipationinabsorb- on a primary risk perspective.comply, Ioannou related. AndUnited States and its partners changedonFebruary20th,ing liabilities related to - majorThe P&I cover would comeastheinsurancecomponentin support of Ukraine). [Edi-1998,whentheAmericancasualtiesarenotnewtotheintoplayintermsofcer- understandingtheinsuredistors Italics}P&IbecameasignatorytoInternationalGroupofP&Itain liabilities that may havealso paramount in the process.The American P&I Clubs thePoolingAgreementandClubs (the Group). Each vesselresulted (such as loss of lifeAsIoannousaysofthepro- unique coverage provides the a full member of the Interna- that may be insured through theor injury to crew) in the eventcessforacceptinganopera- USwithaseatatthetable tionalGroupofP&IClubs,Group is entered on a primarythe primary War risks covertor, Applicants for insurancewhen it comes to global P&Imore often simply calledlevel with one of the 12 Clubs.wasexhausted(exceededare fully vetted at the outsetcoverage. A role critical to the the Group.Whenanincidentoccurs,the maximum value insured)usingindustry-standarddata- nations marine commerce.'