Indian shipping directorate consults on India P&I Club

NEW DELHI : The plan for a new Indian Protection & Indemnity (P&I) Club has taken a step closer to reality with news that the Indian Directorate General of Shipping has issued a tender to select a consulting firm to carry out a feasibility study for its proposed creation.

The tender process opened on 12 November and the bid submission end date is 16 December. The tender inviting authority is Captain Manish Kumar, nautical surveyor cum DDG tech Directorate General Shipping, Mumbai.

The plan was first mooted at the start of this year and was reportedly sparked by the impact of Russian sanctions on Indian trade and shipping.

“I would think it is important to have a P&I entity of India’s own ownership,” Finance Minister Smt.Nirmala Sitharaman reportedly said in October 2023. “It would reduce India’s vulnerability to international sanctions and pressures to provide strategic flexibility in shipping operations.”

It was hoped that the planned protection and indemnity (P&I) entity, to be named India Club, would provide third-party maritime insurance for Indian ships operating in coastal regions and inland waterways, and thus would deliver greater independence for Indian business and the economy.

The initiative is expected to benefit domestic fleet owners and reduce dependence on foreign entities for insurance coverage. Public sector insurance companies such as New India Assurance and GIC Re are being considered as partners for the initiative, reported Indian newspaper Business Standard earlier this year.