Facts for Prelims (FFP)
Source: LM
Context: India plans to establish its own Protection and Indemnity (P&I) entity, named the India Club, to provide insurance for ships operating along its coasts and waterways.
What are P&I clubs?
They are mutual insurance associations that offer risk pooling and coverage for third-party risks like cargo damage, war, and environmental hazards.
Aim:
The initiative aims to reduce vulnerability to international pressures, particularly in conflicts like the Russia-Ukraine situation. The India Club will initially focus on insuring ships involved in domestic movements, led by the Ministry of Ports, Shipping, and Waterways.
Global P&I Club: International Group of P&I Clubs: Headquartered in London, this group comprises 13 clubs covering about 90% of the world’s ocean-going vessels.
