India tightens verification process of P&I cover of ships calling ports
The move follows a few incidents wherein the P&I insurers declined to compensate pollution claims due to vessels possessing invalid P&I insurance certificates, which have been declared invalid by the underwriter for non-payment of premiums.
“This scenario necessitates a rigorous verification process to ensure the validity and authenticity of P&I certificates,” D G Shipping wrote in a May 7 notice.
The Merchant Shipping (Regulation of Entry of Ships into Ports, Anchorages and Offshore Facilities) Rules, 2012, which took effect from April 2012, makes it mandatory for all ships of 300 gross tonnage (GT) or more, entering into or sailing out of Indian ports and/or transiting Indian waters to hold a valid P&I insurance issued either by the International Group of Protection and Indemnity Clubs (IG Clubs) or by insurance companies authorised by the Central government.
In shipping, third-party liabilities arising from operating ships such as oil pollution, wreck removal, damage to port property, loss of life and personal injury to crew, passengers and others on board, cargo loss and damage are commonly referred to as protection and indemnity (P&I) insurance.
India’s maritime regulator has “strongly advised” shipowners and operators to meticulously review their P&I coverage to ensure it adequately meets their specific operational needs and complies with all relevant domestic and international regulations.
Further, ship owners and operators have to ensure validity of the P&I insurance certificates, including Blue Card and Certificate of Insurance or Other Financial Security (CIOFS), in original, certified, or electronic form, in accordance with the statutory requirements, which shall be verifiable online, according to the D G Shipping notice.
These documents shall be submitted to the respective port authorities directly or using the Maritime Single Window (MSW) portal, prior to the vessel’s expected arrival in Indian ports.
Besides, the port authorities of all major/other than major ports and/or maritime boards have been asked to verify the authenticity of the P&I insurance cover of foreign flagged vessels calling at Indian ports directly through the official website of the P&I insurer. This verification should be done through the IG Clubs online verification system or via the official website of the respective non-IG insurer, listed on the D G Shipping website.
The port authorities have to ensure that the certificate's validity covers the entire duration of the vessel's intended port stay.
If the insurer’s website is experiencing technical errors and/or further verification may be required, the port authorities can do it through the local correspondents (agents) of the P&I insurer. All P&I insurers are required to keep their local correspondents list updated on their official website.
In cases where a vessel's premium payments are deferred or not remitted, the P&I insurer’s website must clearly state that the certificate is invalid or that the premium remains unpaid.
“If the insurer does not correctly indicate the premium status, the P&I certificate shall be presumed valid, and the insurer cannot repudiate liability arising therefrom,” the D G Shipping wrote in the May 7 notice.
The P&I insurance validity status displayed on the website shall clearly indicate that the coverage is effective for a minimum period of three months from the date of the vessel’s entry into an Indian port, or from the annual (insurance) renewal date, which is ordinarily 20th February of each calendar year, whichever is applicable. In instances where this condition is not met, the P&I insurer’s website must provide a specific remark detailing the status of coverage and other relevant information, the notice said.
The non-IG Club insurers have been given six months from May 7 to update their websites with the requisite data.
Thereafter, port authorities shall rely only on these platforms for real-time and accurate verification of P&I certificates. While email-based verification shall remain available as a provisional measure until the insurer’s official websites are operational, it will be discontinued after the specified timeline. Once the websites are operational, the links should be made available on the DGS website.
“Any irregularities or suspicions concerning the authenticity or validity of the P&I insurance certificate, Blue Card, or CIOFS shall be reported to the Directorate General of Shipping without delay, and the concerned vessel shall not be permitted entry into Indian ports until such issue is resolved. If the vessel is already within Indian waters, it shall be directed to depart from the Indian waters without delay,” the notice added.
