P&I clubs

How the International Group pool works

The International Group of P&I Clubs (IG) is a mutual-of-mutuals: 13 individual P&I mutuals that collectively share large-claim exposure through the Pool. Each Club retains individual claims up to US$10 million per event. Between $10 million and $100 million, the Pool spreads the loss across all 13 Clubs proportionately. Above $100 million and up to $3.1 billion, the Group Excess Loss (GXL) reinsurance contract responds; the GXL is placed with a syndicate of leading global reinsurers. Above the GXL layer, the Overspill Protection Reinsurance Contract steps in for catastrophic losses.

Historical loss ratios: the Group has ~110-year continuous history + is the bedrock of merchant shipping liability insurance. Individual Clubs occasionally exit or merge (2023 formation of NorthStandard from the North of England + Standard Club merger); the Group itself has remained stable.

MLC 2006 role

Under MLC 2006 Standard A2.5.2 (repatriation) + A4.2.1 (four months' unpaid wages + repatriation on abandonment), every vessel's DMLC Part II names a financial-security provider. IG Club members cover the vast majority of these certificates. When a seafarer is abandoned, the Club named on the DMLC:

1. Confirms the abandonment claim within 24-72 hours.
2. Pays outstanding wages up to 4 months' contractual entitlement.
3. Arranges repatriation to the seafarer's country of residence.
4. Files subrogated recovery action against the shipowner.

See our MLC financial-security provider directory for the 24/7 emergency-contact numbers.