Following the Merchant Shipping (Regulation of Entry of Ships into Ports, Anchorages and Offshore facilities) Rules, 2012 (referred to as the ‘Port Entry Rules 2012’) and MSN 02 of 2015 dated March 4, 2015, merchant vessels of 300 gross tons (GT) and above that plan to call at Indian ports must possess and provide valid Protection and Indemnity (P&I) Insurance Certificates as proof of insurance. This requirement is mandated by the Central Government, exercising its authority under Section 457 of the Merchant Shipping Act, 1958 (as amended), reports the DIRECTORATE GENERAL OF SHIPPING, MUMBAI.
Complying With Conventions
This directive is issued to ensure compliance with international conventions regarding liabilities and compensation and applies to all vessels subject to these conventions that call at Indian ports or transit through Indian waters.
Protection and Indemnity (P&I) Insurance is crucial as it provides essential coverage for various third-party liabilities. These include, but are not limited to: loss of life and personal injury to crew, passengers, and others onboard; loss and damage to cargo; pollution caused by oil and other hazardous substances; wreck removal; collision; and property damage. Consequently, any merchant vessel calling at an Indian port is mandated to maintain and present a valid P&I insurance certificate that adheres to relevant national and international regulations. Furthermore, a Certificate of Insurance or Other Financial Security (CiOFS) issued by a competent authority grants the right to directly claim compensation from the P&I insurer of the vessel responsible for the damage.
The Directorate has become aware of instances where P&I insurers have declined to compensate pollution claims due to the involved vessels possessing invalid P&I Insurance Certificates. These certificates were declared invalid by the P&I Insurer for reasons such as the non-payment of premiums. This situation necessitates a stringent verification process to ascertain the validity and authenticity of P&I Certificates.
Therefore, all stakeholders are required to adhere to the following requirements to guarantee the validity of P&I insurance during port calls of all Indian and foreign-flagged vessels:
- The Vessel owners, operators, masters, or their authorized representatives shall:
- Note the variability of P&I coverage: Understand that P&I insurance coverage can differ based on applicable conventions, specific policy terms, and/or the issuing P&I entity. Shipowners and operators are strongly advised to carefully review their P&I coverage to ensure it adequately meets their specific operational needs and complies with all relevant domestic and international regulations.
- Ensure validity and verifiability of P&I Certificates: Ensure the validity of the P&I Insurance Certificates, including the Blue Card and the Certificate of Insurance or Other Financial Security (CiOFS), in original, certified, or electronic form, in accordance with statutory requirements. These documents must be verifiable online.
iii. Submit documents prior to arrival: Submit these documents directly to the respective port authorities or through the Maritime Single Window (MSW) Portal before the vessel’s expected time of arrival.
Measured to be Followed
Under the provisions of the Port Entry Rules 2012, the port authorities of all Major and other than major ports, as well as maritime boards, are mandated to enforce the following measures for foreign-flagged vessels calling at Indian ports:
- Direct Verification of P&I Certificate Authenticity: The authenticity of the P&I Insurance Certificate must be verified directly through the official website of the issuing P&I insurer. This verification shall be conducted using the online verification system of the International Group of P&I Clubs (IG P&I).
- Verification of Coverage Duration: Ensure that the validity of the P&I Insurance Certificate covers the entire intended duration of the vessel’s stay within the Indian port.
iii. Alternative Verification in Case of Technical Issues: In situations where the insurer’s website is experiencing technical difficulties or further verification is deemed necessary, the port authorities may verify the certificate’s authenticity through the local correspondents of the P&I insurer. All P&I insurers are required to maintain an updated list of their local correspondents on their official website.
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Source: DIRECTORATE GENERAL OF SHIPPING, MUMBAI
