India to tighten process of checking authenticity and validity of P&I cover of ships calling ports
The Directorate General of Shipping will mandate Indian port authorities to implement a comprehensive process for checking the authenticity and validity of the Protection and Indemnity (P&I) insurance certificates, including confirmation of premium payments, for all vessels calling Indian ports, according to ETInfra.
The International Group of Protection and Indemnity Clubs (IG Clubs), a 13-member group based in London, and D G Shipping approved non-IG insurers shall ensure that the validity of P&I certificates including the status of premium paid etc are available online for verification by the port authorities.
The current method of verifying these details by email shall be discouraged from 1 January 2025, according to a draft Merchant Shipping notice on ‘Mandatory Verification of Protection and Indemnity (P&I) Certificate by Indian Port Authorities’.
The transmission of documents shall be conducted via electronic mail or physical delivery methods until 30 November. Thereafter, in compliance with the Maritime Single Window (MSW) requirements and to ease the process, all document submissions shall be executed through the designated MSW online portal.
Any irregularities or suspicions concerning the authenticity or validity of the P&I insurance certificate, Blue Card, or Certificate of Insurance or Other Financial Security (CIOFS) shall be reported to the Directorate General of Shipping without delay and such vessel would not be permitted entry,” the draft notice stated.
The move follows some recent incidents that highlighted instances of vessels with invalid P&I certificates due to non-payment of premiums, entering Indian ports without proper notification to port authorities.
“This situation necessitates a more rigorous verification process to ensure the validity and authenticity of P&I certificates, thereby maintaining the integrity and safety of maritime operations in Indian waters. A valid Protection and Indemnity cover for vessels entering Indian ports is critical as it provides essential coverage for third-party liabilities, including personal injury, environmental pollution, cargo damage, and wreck removal,” the D G Shipping wrote in the draft notice.
Shipowners and operators have been advised to review their P&I coverage to ensure it adequately meets their specific operational needs and complies with all relevant international and Indian regulations.
Vessel owners, operators, masters, or their authorized representatives will have to submit the original or certified copy of the P&I insurance certificate, evidence of valid premium payment, Blue Card and Certificate of Insurance or Other Financial Security (CIOFS) to the respective port authority at least 72 hours prior to the vessel's expected arrival.
The port authorities shall verify the authenticity of the P&I insurance certificate directly with the issuing P&I Club through their official channels, ensure the certificate's validity covers the entire duration of the vessel's intended port stay, confirm that all premiums have been paid in full and are current, verify the Blue Card or CIOFS through the International Group of P&I Clubs' online verification system or the non-IG insurers website.
Alternately, the port authorities shall verify the authenticity by sending an email query to the P&I insurer to confirm the premium amount, payment date and receipt of payment by the P&I Club.
The Indian port authorities of major/non-major ports, maritime boards and all vessels, irrespective of flag, calling at Indian ports have to comply with these requirements.
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 foreign ships of 300 gross tonnage (GT) or more, entering the country’s ports to hold a valid third-party liability cover against maritime claims.
Such third-party liability risks have to be insured either with the London based IG Clubs or such other insurance company authorised by the government, according to the rules.
The rules were framed after the EU banned the purchase, transport, finance and insurance of Iranian oil from 1 July 2012, reacting to its nuclear programme. Following the EU ban, IG Clubs have stopped providing third- party liability cover to ships hauling Iranian crude oil.
The required P&I insurance is intended to cover liabilities arising under the International Convention on Civil Liability for Oil Pollution Damage; the International Convention on Civil Liability for Bunker Oil Pollution Damage; the Nairobi International Convention on the Removal of Wrecks, 2007; the Maritime Labour Convention, 2006; and the Convention on Limitation of Liability for Maritime Claims.
