Study On The Law Application Problem Of P&I Insurance Contract

Protection and indemnity insurance (hereinafter referred to as P&I insurance) contract is the contract which the ship owner, operator, or charterer insures potential liability risks arising from his ships to a P&I Club. Since the P&I Club, as the underwriter of P&I insurance, does not have the legal status of "insurance industry operator" required by Insurance Law of the People’s Republic of China (hereinafter referred to as CIL), it is still controversial that whether the P&I insurance contract belongs to the insurance contracts from the view of CIL and whether the relevant provisions of CIL and Chapter XII "Marine Insurance Contract" in Maritime Code of the People s Republic of China (hereinafter referred to as CMC) can be directly applicable to its legal relationship adjustment.This paper argued that the identification of the contract legal character cannot be determined only on the basis of legal status of the contract subject, but also should be comprehensively understood and accurately judged on the basis of the legal relationship involved in the contract. Consequently, this paper comprehensively explored the conclusion and specific content items of the P&I insurance contract, and identified its legal character as a marine insurance contract, as well as its particularity. After clearly defining the legal character, the current law application situation of P&I insurance contract in UK and the current situation in our country were subsequently analyzed.The shipowner’s potential liability risks are the main risks underwritten by P&I insurance contract. Catering to development trend of the protection of the interests of the third party in modern liability insurance, the international conventions and domestic legislations expressly confer "right of direct claim" to the third party. Therefore, based on the distinction between compulsory liability insurance and non-mandatory liability insurance, this paper discuss the legal character of right of direct claim and determine the applicable law to deal with disputes between the third party and P&I Club. In addition, this paper discuss the applicable law to deal with disputes between shipowners and P&I Club, between the third party and P&I Club when P&I insurance contract has some foreign elements.