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P&I Rules and Exceptions

Copyright The Swedish Club 2023

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  • Part One: An introduction
  • Part Two: P&I Rules and Comments
  • Part Three: Appendices
  • Useful Links

P&I Rules and Exceptions

The Swedish Club, established by shipowners in 1872, is a leading marine mutual insurer headquartered in Gothenburg, Sweden, with offices in Piraeus, Oslo, London, Hong Kong, and Singapore.

These guidelines are intended as a useful tool, helping to provide an in-depth understanding of the Club Rules for all who work in the field of P&I worldwide.

P&I Rules and Exceptions > Part Two: P&I Rules and Comments > Chapter V Other provisions > Rule 16 Payment by the Association
  • Home
  • Part One: An introduction
  • Part Two: P&I Rules and Comments
  • Part Three: Appendices
  • Useful Links
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  • Part One: An introduction to The Swedish Club and the background of Protection & Indemnity (P&I)
    • A. The Swedish Club
      • A.1 Background
      • A.2 How it started
      • A.3 Operation of The Swedish Club
      • A.4 Expansion of liabilities
    • B. Protection & Indemnity (P&I) Insurance
      • B.1 The concept of mutuality
      • B.2 The International Group
      • B.3 Reinsurance
      • B.4 Club Rules and the Pooling Agreement
  • Part Two: P&I Rules and Comments
    • Chapter I Introductory
      • Rule 1: Definitions of rules and language
        • Commentary: Rule 1 Definitions of rules and language
      • Rule 2: Nature of cover
        • Commentary: Rule 2 Nature of cover
    • Chapter II Risks covered
      • Rule 3 Liabilities in respect of persons
        • Commentary: Rule 3 Liabilities in respect of persons
          • Section 1 Injury, illness, repatriation and death – crew
          • Section 2 Wages – crew
          • Section 3 Loss of damage to effects – crew
          • Section 4 Payment of crew claims
          • Section 5 Passenger liabilities
          • Section 6 Limitation of cover for passengers and seamen
          • Section 7 Injury, illness and death – others
          • Section 8 Stowaways and refugees
          • Section 9 Life salvage
          • Section 10 Deportation
          • Section 11 Diversion expenses
      • Rule 4 Liabilities in respect of cargo
        • Commentary: Rule 4 Liabilities in respect of cargo
          • Section 1 Cargo liabilities
          • Section 2 Cargo liabilities during through transports and lighterage
          • Section 3 Liabilities for bill of lading particulars
          • Section 4 Liabilities for delivery of cargo
          • Section 5 Paperless trading
          • Section 6 Extraordinary handling costs
          • Section 7 General Average
          • Section 8 Deviation
      • Rule 5 Liabilities in respect of delay
        • Commentary: Rule 5 Liabilities in respect of delay
      • Rule 6 Liabilities in respect of pollution
        • Commentary: Rule 6 Liabilities in respect of pollution
          • Section 1 Pollution Liabilities
          • Section 2 Oil pollution limitation of cover
      • Rule 7 Other liabilities
        • Commentary: Rule 7 Other liabilities
          • Section 1 Liabilities for other property
          • Section 2 Collision with other ships
          • Section 3 Damage to fixed and floating objects
          • Section 4 Special compensation to salvors
          • Section 5 Obstruction to navigation and wreck liabilities
          • Section 6 Liabilities in respect of fines
          • Section 7 Quarantine expenses
          • Section 8 Towage liabilities
          • Section 9 Confiscation of ship
      • Rule 8 Liabilities for costs
        • Commentary: Rule 8 Liabilities for costs
          • Section 1 Sue and labour and legal costs
          • Section 2 Preventative costs and amounts saved
      • Rule 9 Charterers’ Liability Insurance and Consortium Claims (superseded)
    • Chapter III Conditions for cover
      • Rule 10 Conditions
        • Commentary: Rule 10 Conditions
          • Section 1 Member’s obligations with regard to classification and requirements by Classification Society, flag State or otherwise
          • Section 2 Standard terms of contracts
          • Section 3 Regulations
          • Section 4 Obligations with regard to casualties and claims
          • Section 5 Survey
          • Section 6 Disclosure and alteration of risk
    • Chapter IV Exclusions from cover
      • Rule 11 Exclusions
        • Commentary: Rule 11 Exclusions
          • Section 1 Member’s intent or gross negligence
          • Section 2 General exclusions
          • Section 3 Exclusions for certain operations
          • Section 4 Sanctions
          • Section 5 War risks
          • Section 6 Other insurance
          • Section 7 Nuclear risks
    • Chapter V Other provisions
      • Rule 12 Security for claims and certificates
        • Commentary: Rule 12 Security for claims and certificates
      • Rule 13 Set-off
        • Commentary: Rule 13 Set-off
      • Rule 14 Right of recourse
        • Commentary: Rule 14 Right of recourse
      • Rule 15 Time bar
        • Commentary: Rule 15 Time bar
      • Rule 16 Payment by the Association
        • Commentary: Rule 16 Payment by the Association
      • Rule 17 Forbearance
        • Commentary: Rule 17 Forbearance
      • Rule 18 Disputes
        • Commentary: Rule 18 Disputes
      • Rule 19 Omnibus clause
        • Commentary: Rule 19 Omnibus clause
      • Rule 20 Period of insurance
        • Commentary: Rule 20 Period of insurance
      • Rule 21 Insurance premium tax
        • Commentary: Rule 21 Insurance premium tax
      • Rule 22 Premiums and deductibles
        • Commentary: Rule 22 Premiums and deductibles
      • Rule 23 Additional premiums
        • Commentary: Rule 23 Additional premiums
      • Rule 24 Overspill calls
        • Commentary: Rule 24 Overspill calls
      • Rule 25 Right of lien for amounts due to the Association
        • Commentary: Rule 25 Right of lien for amounts due to the Association
      • Rule 26 Termination
        • Commentary: Rule 26 Termination
      • Rule 27 Cesser
        • Commentary: Rule 27 Cesser
      • Rule 28 Effect of termination and cesser
        • Commentary: Rule 28 Effect of termination and cesser
      • Rule 29 Laid-up returns
        • Commentary: Rule 29 Laid-up returns
      • Rule 30 Joint members, co-assureds, affiliated charterers and contractors
        • Commentary: Rule 30 Joint members, co-assureds, affiliated charterers and contractors
      • Rule 31 Fleet entry
        • Commentary: Rule 31 Fleet entry
      • Rule 32 Affiliated companies
        • Commentary: Rule 32 Affiliated companies
      • Rule 33 Membership of ITOPF
        • Commentary: Rule 33 Membership of ITOPF
      • Rule 34 TOPIA and STOPIA
        • Commentary: Rule 34 TOPIA and STOPIA
      • Rule 35 Mortgaged ships
        • Commentary: Rule 35 Mortgaged ships
      • Rule 36 Surplus
        • Commentary: Rule 36 Surplus
      • Charterer’s Liability
        • Comments on: Charterer’s Liability
  • Part Three: Appendices
    • Appendix I
      • Appendix I, Rule 1 Interpretation
      • Appendix I, Rule 2 Recoverability of overspill claims
      • Appendix I, Rule 3 Payment of overspill claims
      • Appendix I, Rule 4 Overspill claims – expert determinations
      • Appendix I, Rule 5 Levying of overspill calls
      • Appendix I, Rule 6 Closing of policy years for overspill calls
      • Appendix I, Rule 7 Security for overspill calls on termination of cesser
    • Appendix II
      • Appendix II, Rule 1 Passengers and seamen
      • Appendix II, Rule 2 Maritime Labour Convention (2006) Extension Clause
      • Appendix II, Rule 3 Consortium claims
  • Useful Links

Rule 16 Payment by the Association

Payment to the Member of any sums due shall fully discharge the Association of its liabilities under these Rules unless otherwise agreed.

Commentary: Rule 16 Payment by the Association

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