Charterer´s protecion and indemnity and F,D and D

3rd party liabilities

The P & I insurance covers the Charterers´Liability towards third parties in a similar manner as P & I Clubs cover Shipowners. This can range from bodily injury to accidental death to people on board or near the vessel, due to stevedoring operations or if the vessel were to crash into the pier or quay while under command of a pilot appointed by the Charterer. At the same time, liability for any damage to piers, quays or other property consecutive to such an accident would also be covered under this item.

Liability to Cargo

When the Charterer loads cargo belonging to third parties, the insurance should be extended to cover this liability towards such cargo. The consignees or their insurers, by way of subrogation, are likely to proceed against the Charterer for alleged improper loading, stowage etc.


The purpose of FD&D is to cover costs and expenses incurred in connection with the Assured´s defence in claims, disputes and proceedings, where Underwriters decide that the case merits support, relating to matters such s freight, deadfreight, demurrage arising out of Charter Party/Bill of lading, detention, salvage, general contributions and charges.

Charterer´s liability to hull

Stevedore Damage

According to the terms of the Charter party, the Charterer is usually responsible for the loading, stowage and unloading of the cargo. If, in the course of one of these operations, the vessel were to be damaged, the Charterer would - in the first place - be considered as liable even if , as is usual the operations are carried out by Stevedores. There is, of course, a right of action against the Stevedores themselves but - in such a case - it would have to be proved that the latter were negligent in the exercise of their duties. In certain areas the chances of enforcing a claim against Stevedores are very remote.

Safe port/berth obligation

Furthermore, Charter Parties provide for a "safe berth" provision, whereunder the Charterer may be rendered liable for damage due - for instance - to stranding at the port of lading or discharge and, particularly, in the scope or a Time Charter where the Owners are not usually aware in advance of the ports and berths used.

Damage due to bad bunkers

It is normally the Time Charterers obligation to provide bunkers to the vessel. If such bunkers are off specification and therefore causes damage to the vessels engines, there is a possibility that liability for such damage will fall on the Charterer. Such liability will be covered by this insurance. BUNKER INSURANCE Normally it is the Time Charterer´s obligation to bunker the vessel, and such bunkers being owned by the Time Charterers have to contribute in matters such as General Average, Salvage etc. Also, in the case of a total loss (Actual or constructive) of the vessel, the Bunker insurance covers the value of the bunkers on board that are owned by the Time Charterer at the time of the casualty.


This insurance covers payment of demurrage to Shipowners as per Charter Party terms consequent to delay by strike, lock-out or by congestion following such a strike or lock-out.


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