THE DEVELOPMENT OF THE P&I CLUB AS A PROTECTION FOR INDONESIAN CARRIER

Abstract

Sea transportation experiences risks and material loss in its operation. The most significant risks include damage to the vessel and sea pollution due to ship collisions and accidents. The carrier should prioritize the risks. When the underwriter does not cover the risk, the shipowner should establish an association covering the loss among the members to the extent the underwriter does not cover it. This study will examine the importance of the Rule to P&I Clubs and its impact on Indonesian carriers and will also find the differences between P&I Club and Insurance. The research adopts Library Resarch Method, dogmatic legal approach, a descriptive and analytical nature. Due to the method, the following sources have been used: Convention law, domestic legislation, case law, legal textbooks, journal articles, P&I Club Rules, preparatory works, and websites of international organizations and law firms. P&I CLUB covers many accidents which are not covered by any marine insurance. In pollution accidents, P&I covers every detail of the impact of pollution. The difference between P&I Club with marine loss insurance, in general, is that P&I Club covers the loss/damage more extensively, which is not covered by any marine insurance.