China P&I Club is the largest P&I insurer in China, and provides members with excellent underwriting quality as well as an advanced data analysis system which delivers timely pricing. CPI Blue Cards, Certificates and LOUs are accepted at major ports and countries around the world. The Association has commercial relationships with 5 major IG Clubs.
The Association is committed to providing professional, timely and efficient claims service to members. The claims team has extensive claims handling experience, works closely with members, and always puts members’ interest first. Our claims team is experienced in handling various types of claims such as pollution by oil and other hazardous substances, death, illness, or injury to crew and other passengers on board, cargo liabilities, collision and damage to dock and other property and installations, wreck removal and fines. The claims team and loss prevention team respond immediately to major marine casualty or accident.
In addition to claims handling, the Association also provides members with a wide range of services including consulting on legal issues and loss prevention.
Scope of Cover
The Protection and Indemnity coverage provided by the Association is identical to that provided by member clubs of the IG in respect of both cover scope and limit, which includes:
1. Loss of life, personal injury and illness of crew and passengers on board;
2. Cargo liability;
3. Pollution risk;
4. Wreck removal;
5. Collision & damage to fixed and floating objects;
6. Fines and penalties, crew repatriation and substitution, towage liabilities, etc.
The Association has set up a global correspondents network covering all major sea ports, consisting of 358 legal and commercial correspondents deployed in 143 countries and regions, providing 24-hour service to members.
The Association’s Marine Hull facility was set up in 1998 under the approval of the Association’s Board of Directors. The initiation of the Hull facility marks the shift of the Association’s emphasis from traditional P&I to a diversified business portfolio in order to meet the demands of the members for One-Stop Service and seamless insurance coverage. The Hull facility provides wide coverage for marine risks (H&M, Disbursements and War Risks) in addition to the traditional P&I covers to members, providing them with more options to streamline their insurance arrangement and narrow any gap that may exist in their insurances.
Hull Covers are offered to members on a mutual basis either stand-alone or as a package in order to address members’ diverse needs and requirements.
On the principle of mutuality, the Association, in addition to its traditional P&I covers, offers Hull & Machinery insurance based on standard hull conditions, Increased Value and War Risks conditions according to the usual Hull Clauses in the Association’s Rules, and the scope of coverage is identical to PICC 86 Clauses. The Association has also been flexible on the hull clauses by adopting widely recognized conditions such as Institute Time Clauses, PICC Clauses (for worldwide and coastal trading vessels) tailored to meet individual member’s needs.
Our Business Philosophy
Mutuality; Reliability; Stability; Professional; One-Stop Service.
Mutuality: the Association’s Hull & Machinery business operates on the distinctive principle of mutuality with a strong commitment to minimizing members’ insurance costs for their best interest.
Reliability: The Association’s introduction of Hull & Machinery business will on one hand strengthen the Association’s financial position and on the other hand provide reliable insurance products for the members. The reliability is also evident in the Association’s reinsurance coverage and its selective policy on reinsurance partners’ rating and usual credit control.
Stability: Not only is the Association’s financial position stable, its Hull & Machinery business strategy has also been designed to minimize the effect of market fluctuation on the members. The Association has also been highly selective on the investment projects and the pace of its business developments when building up the reserves;
Professional: The Association specializes in marine insurance and consequently concentrates management, members training, product design and customer service in the field to provide comprehensive insurance solution and exceptional service to the members.
One-stop Service: The one-stop service is reflected in the scope of cover and claims handling where both P&I and H&M elements are involved in a single casualty. In order to better protect member’s interests, the one-stop service will try to minimize any insurance gap or shortfall and effectively avoid disputes which may arise in case of a marine casualty when different insurers are involved.
The Hull & Machinery team consists of maritime university alumni who either have seafaring experience or legal background. The Association, staffed with such a specialized team, can provide personalized insurance to meet Members’ individual requirements based on their loss records and fleet trading patterns as well as internal management. The Hull & Machinery team also provides loss prevention advisory service for specific issues based on information received from its correspondents network and any other external resources. All types of service is available to Members 24/7 with the assistance of in-house professionals, international correspondents, surveyors, lawyers and salvage teams. The Association’s Letter of Undertaking is recognized globally by claimants, and had helped members to release their vessels detained by authorities or arrested by claimants in the past.
Loss prevention is another distinctive feature of the Association. Loss prevention not only includes entry condition survey to control underwriting quality but also includes onsite training, seminars and regular e-bulletins posted through WeChat Official Account and the CPI website.
Freight, Demurrage and Defence (FD&D), is a discretionary legal cost and expense insurance incurred by agreed matters or events. The Association’s professional team also provides legal advice, modifies various legal documents and negotiates with the opposing party for members.
Scope of Cover
FD&D covers the costs and expenses reasonably incurred in connection with the following matters or events:
1. Bill of lading dispute;
2. Voyage charter dispute;
3. Time charter dispute;
4. Bareboat charter dispute;
5. Other carriage contract dispute;
6. Ship's collision dispute;
7. Salvage dispute;
8. Policy of insurance dispute;
9. Damage to the ship dispute;
10. The ship's protection;
11. Building, sale and repair of the ship disputes;
12. Mortgage dispute;
13. Any other contract dispute;
14. Other matters.
Most of the disputes referred to the FD&D team are bill of lading and charter-party disputes.
Through close contact with many IG clubs and renowned international law firms, the Association’s professional staff will provide professional legal opinions regarding members’ cases and enquiries. The Association also seek competent and qualified lawyers, surveyors and correspondents around the world for members, providing specific support in members’ cases in the event of arbitration and lawsuit, minimizing members’ legal costs, and handles various types of enquiries and issues promptly and efficiently.
The Association and its UK Company’s FD&D team is comprised of lawyers with experience practicing Chinese and English laws, dedicated to providing legal service and support in more than one jurisdiction and facilitating lawsuits and arbitrations in UK for members in an efficient manner.
In the shipping industry, Charterers play a very important role, but sometimes encounter more difficulties than shipowners when dealing with accidents or incidents. A shipowner is able to communicate directly with the Master and crew, and obtain first-hand information about the nature and extent of the accidents or incidents, while a charterer is often in lack of such sources of information, although the charterer’s liabilities are no less than the shipowner’s, which include contractual liabilities to shipowners and cargo owners as well as possible non-contractual liabilities to third parties.
To assist Charterers, the Association’s “charterers product” provides a worldwide network to gather information extensively and profoundly so as to assess the situation and offers claims service through the Association’s experienced team.
Scope of Cover
1. Member liability in his capacity as charterer in respect of risks set out in Rule 3, to indemnify the owner or disponent owner of the entered ship.
2. Charterers Liability, together with costs and expenses incidental thereto, for loss of or damage to the entered ship.
3. The loss incurred by the charterer as a result of loss of or damage to bunkers, fuel or other property of the charterer on board the entered ship.
Covers will be offered to charterers of ships on T/C, TCT and V/C basis.
The FDD & TCL Department is a team of reputable, dedicated and knowledgeable marine insurance and English law professionals, proud of delivering high quality insurance products and advisory services to companies that charter vessels to carry cargo by sea. Based on the Association’s worldwide network of both correspondents and lawyers, and the international first-class reinsurance support, we are committed to providing our professional service on a 24/7 basis year round.
The Association introduced the Entry Condition Survey Program and Ship Visit Campaign in the 1990’s as part of the underwriting quality control, risk management and loss prevention process, and has subsequently implemented a number of mechanisms and trigger factors that enable the Association to initiate pre-entry or post-entry condition surveys on vessels.
The ship condition survey program has played an important role in the control of the underwriting quality and at large, it helps the members in their loss prevention and to minimize their insurance costs by keeping good loss records. With the implementation of the ISM in the last two decades, the shipping industry put forward much higher standard to ship’s safety and environmental protection capability, which has given rise to a requirement to extend ship condition survey to all vessels that are subject to condition survey, either for entry condition survey or random survey as per relevant rules of the Association.
The Association’s condition survey generally focuses on shipboard safety management, structural integrity, pollution prevention capability, cargo worthiness, etc., to identify any defects or deficiencies that may give rise to concerns. In the meantime, it will also help underwriters evaluate if a vessel meets the Association’s entry requirements in terms of the physical condition of the ship, shipboard and shore-based management level, the quality of manning, etc.
In recent years, the condition survey program pays more attention to vessels listed by the PSC inspection, following up on the final rectification of any outstanding issues. By way of condition survey, the Association will be able to assist the members to identify deficiencies and defects which are likely to expose themselves and the Association to risks and claims, then provide members with appropriate recommendations for rectification or maintenance.
Please always refer to the Association’s “Circulars” under “Publications” relating to condition survey or click “here” for more details.
To better meet member’s needs, the Association is pleased to arrange training programs for member’s personnels regarding claims handling process, critical points in dealing with certain types of cases and how to avoid or to minimize the occurrence of certain types of incidents.
The Association also organizes training program for Members on important issues such as carriage of nickel ore, oil pollution prevention and compensation.
The Association organizes seminars for members every year. Experts from maritime courts, maritime safety administrations, universities and law firms will be invited to give lectures on prevailing issues or topics of common concern. The seminars provide opportunities for members to exchange opinions and raise loss prevention awareness.
The Association publishes loss prevention circulars and articles regularly through the Wechat Official Account and email subscriptions. Topics range from navigational safety, technical and legal issues, as well as international politics. These articles provide up-to-date advices to members and enhance the prospective and specialty of the loss prevention work.