Public sector general insurers, including official reinsurer GIC Re and shipping companies, are planning to set up an exclusive entity known as P&I Club to provide cover to shipping companies.
P&I globally is a third-party-liability insurance for ship owners, operators and companies that charter ships. The insurance covers their legal liability in the event of a crew member getting injured or dying in an accident. It also covers collision, wreck removal, marine pollution, stowaways, cargo damage and fines levied by foreign governments or port authorities. In such a club, members contribute to the club’s common risk pool according to the Pooling Agreement rules. The insurance cover is offered from the common pool.
Alice Vaidyan, the newly appointed CMD of GIC Re, revealed that efforts are on for the first time to form such an entity in India. “We need a lot of different approvals from different authorities including DG Shipping for setting up such an entity,” she said while participating in an event organised by the Asia Insurance Post.
GIC Re which is targeting to be among the top ten international reinsurers — its current position is 14th in the world — is planning to convert representative office in Moscow to a branch office and set up branch office in China.
“We also wish to open an office in Brazil and also want to set up an office in China to cater to the Far East. In the future, we also wish to have an office in the United States,’’ Vaidyan said.
GIC Re has, meanwhile, dropped its plan to acquire a company at Lloyd’s market in London. “Even as we have dropped our plan to acquire a company at Lloyd’s market in London, we will be developing our own syndicate over there in the future.”
GIC Re’s mix of business currently stands at 43-57 with 57 per cent business coming from India and 43 per cent coming from abroad. “We are looking at a 50-50 business mix,” she said.