P&I Fines Cover: Listed Categories and Discretion
How P&I clubs cover fines: listed categories covered as of right, board discretion for other fines, and what that means for regulatory penalties like EU ETS.
P&I fines cover is the part of a protection and indemnity club’s rules that responds to fines imposed on a member or its ship. Gard Rule 47, for example, covers fines as of right in three listed categories (cargo short or over-delivery and declaration, immigration, and accidental escape or discharge of oil or another substance) and leaves other fines to the board’s sole discretion where the member took reasonable steps.
The full article will compare the fines rules across the International Group of P&I Clubs and set out how regulatory penalties, including the EU ETS excess emissions penalty , sit against them.