The Indian government is moving forward with plans to establish a national shipping club, known as the India Club, to provide insurance coverage for third-party liabilities in the maritime industry. This move aims to reduce the country’s dependence on international P&I (Protection and Indemnity) clubs, particularly the London-based International Group (IG), which currently dominates the global maritime liability market.
Shipping Secretary T.K. Ramachandran has confirmed the government’s intention to proceed with the setup of the India Club, following a tender process to appoint consultants. The next step involves submitting a proposal to the Union Cabinet for approval. The club will be designed to insure against various risks, including oil pollution, wreck removal, and cargo loss, which are typically covered by international P&I clubs.
The appointment of ACE Insurance Brokers Pvt Ltd as a consultant is a significant step towards launching the India Club. The company will play a crucial role in assessing the feasibility and viability of the project, providing expert advice on the structure and operations of the club. The India Club is expected to provide a range of benefits to the Indian shipping industry, including more competitive insurance rates, improved service quality, and enhanced support for domestic shipowners and operators.
By establishing its own shipping club, India aims to increase its self-reliance in the maritime sector and reduce its reliance on foreign insurance providers. The move is also expected to contribute to the growth and development of the country’s shipping industry, which is a critical component of the national economy. The India Club will operate in line with international best practices and standards, ensuring that Indian shipowners and operators have access to high-quality insurance coverage and support.
The establishment of the India Club is a significant development for the Indian shipping industry, and its success will depend on careful planning, effective implementation, and collaboration between the government, industry stakeholders, and insurance experts. With the government’s commitment to the project and the appointment of a consultant, the India Club is poised to become a reality, providing a new era of insurance coverage and support for the Indian shipping sector.