P&I club to extend range of coverage
The UK Protection & Indemnity (P&I) Club has decided to offer extended cargo cover for items specifically excluded from normal protection and indemnity cover in the club's rules.
It could be used to cover items such as particularly rare and valuable cargo.
The club's manager, Thomas Miller P&I, has an advisory scale to help with rating.
It stressed that fleets and vessels would be individually assessed according to owners' requirements and other risk factors.
The limit for any one incident is US$10 million.
If bills of lading are not produced in relation to the cargo concerned, the limit is $5 million. The club will not retain any portion of the risk.
The new coverage options will remain outside the established P&I arrangements.
There will be no link with the International Group of P&I Clubs' pooling arrangements and excess reinsurance contract.
Nigel Brooks, a director of Thomas Miller P&I, said that the level of members' interest in covering cargo items excluded under the rules had become sufficient for the club to 'create a bolt-on service'.
'It means gearing up our underwriting and claims handling services for a new area of business,' he said.
'It is too early to say which owners, flags and ship types will be interested, although we certainly expect inquiries from the liner trades.'