{"id":277088,"date":"2024-01-10T19:27:53","date_gmt":"2024-01-10T13:57:53","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=277088"},"modified":"2024-01-10T19:27:53","modified_gmt":"2024-01-10T13:57:53","slug":"india-club-what-it-means-for-our-shipping-firms","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/india-club-what-it-means-for-our-shipping-firms\/","title":{"rendered":"India Club: what it means for our shipping firms"},"content":{"rendered":"

Source<\/strong>-This post is based on the article “India Club: what it means for our shipping firms<\/strong>” published in “Live mint<\/strong>” on 10th January 2024.<\/p>\n

Why in the News?<\/h2>\n

India plans to create its own protection and indemnity (P&I) entity, the India Club, to provide insurance for ships in Indian waters thereby reducing reliance on global firms.<\/p>\n

What is a P&I entity or club?<\/h2>\n

1) It is a mutual insurance association<\/strong> offering risk-pooling, information, and representation exclusively for its members, including ship owners, operators, charterers, freight forwarders, and warehouses.<\/p>\n

2) Unlike traditional insurers, P&I clubs reports only to their members<\/strong>, cover third-party open-ended risks<\/strong> such as cargo damage, war, and environmental issues like oil spills which are often avoided by conventional insurers.<\/p>\n

How many such clubs operate globally?<\/h2>\n

1) The London-based International Group of P&I Clubs<\/strong> consists of 13 clubs, covering around 90% of global ocean-going ships.<\/p>\n

2) Member clubs<\/strong>– The UK, US, Korea, Singapore, Japan, the Netherlands, China, Bermuda, Norway, and Sweden.<\/p>\n

3) Club members contribute to the club\u2019s common risk-pool according to the pooling
\nagreement rules.<\/p>\n

Why is India looking to set up its own P&I entity?<\/h2>\n

A locally focused Indian entity could diminish the nation’s susceptibility to global sanctions<\/strong>, as it ensures coverage for ships operating in regions facing sanctions. The events surrounding the Russia-Ukraine war underscore the importance of having such coverage.<\/p>\n

What difficulties might confront such an entity?<\/h2>\n

1) The move will only benefit players like the Shipping Corporation of India and some small shipping lines as 90% of Indian-owned ships are operating under foreign flags <\/span><\/strong>of countries like Panama, Liberia and Kazakhstan.<\/p>\n

2) The India Club might encounter challenges if global traders do not accept its cover.<\/p>\n

UPSC Syllabus- Indian Economy (Infrastructure)<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source-This post is based on the article “India Club: what it means for our shipping firms” published in “Live mint” on 10th January 2024. Why in the News? India plans to create its own protection and indemnity (P&I) entity, the India Club, to provide insurance for ships in Indian waters thereby reducing reliance on global… Continue reading India Club: what it means for our shipping firms<\/span><\/a><\/p>\n","protected":false},"author":10367,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127],"tags":[11872],"class_list":["post-277088","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","tag-9pm-daily-factly","entry"],"jetpack_featured_media_url":"","views":{"total":18,"cached_at":"","cached_date":1704920620},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/277088","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10367"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=277088"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/277088\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=277088"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=277088"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=277088"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}