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P&I cover is intended to give protection and comfort to shipowners and operators against losses and liabilities that they regularly incur whilst engaged in shipping operations and has been doing so for centuries. Since such cover is mutual in nature in the sense that Members indemnify each other against such risks and do not seek to make a profit when doing so, the scope of P&I insurance has been able to expand when necessary in response to the rapidly expanding character, scope and demands of shipping operations. However, such expansion has always been guided and restricted by the need to maintain the concept and requirements of mutuality. In other words, as the scope of risk and liability that is ordinarily and routinely faced by conventional ship operators has expanded, the scope of P&I cover has expanded in response.

However, some owners and operators are exposed to risks that are special to their particular form of shipping operation and which are different to the risks that are experienced by the majority of owners and operators. Claims arising from such special risks do not readily fit into the framework of mutuality. Such risks can result either from the specialist nature of the operations in which relatively few owners or operators are engaged, or from non-standard terms of contracts and other agreements that are used in a particular trade and which impose (often non-negotiable) liabilities that are more onerous than those that are normally imposed on conventional owners and operators by compulsory international and national laws. 

Gard is sympathetic to the needs of such owners and operators to secure adequate insurance protection even though the risks are not capable of being shared on a mutual basis within the standard P&I cover that is reinsured through the International Group Pool. Consequently, Gard has developed several additional covers that are intended to meet such special needs, but which must necessarily be separately reinsured from the standard P&I cover. Such additional insurances are normally only offered to Members that already have Ships that are entered in Gard P. & I. (Bermuda) Ltd or Assuranceforeningen Gard – gjensidig for ordinary P&I risks. The additional covers are intended to supplement the P&I entry to meet special needs falling outside the scope of the cover reinsured under the International Group Pool.

All such additional covers are written by a risk carrier being part of the Gard group  (as insurer) on a fixed premium basis and are subject to the Additional Covers - Terms and Conditions for 2021 which contain a catalogue of various additional insurance products available designed to supplement standard insurance solutions.

The Additional Covers – Terms and Conditions for 2021 are modelled on the Gard Rules for Ships. Most of the provisions in the general sections of the Terms and Conditional replicate the general terms of the Rules, e.g. the duty of disclosure, alteration of risk, class and statutory compliance warranty, termination and cesser etc. Therefore, the Member, as the assured, should appreciate and be aware that the guidance that is given elsewhere in this publication as to the importance that such issues have to the Rules is equally applicable in relation to the additional covers. Part II, Chapter 2, of the Additional Covers – Terms and Conditions contains the catalogue of risks that can be covered subject to an express agreement between the Member and a risk carrier being part of the Gard group. The Member is only covered in respect of such risk(s) that are expressly specified in the relevant insurance policy.

Further information about the additional covers is available on www.gard.no or from Gard’s underwriting department.