1. Ufuk Teker General Manager of Türk P&I Insurance

2. We will… • give insight to establishment of Türk P&I Insurance
• briefly explain why having a local insurer is a plus
• describe the cover we provide
• give an insight to the rules governing Türk P&I s operations

3. TÜRK P&I
Türk P&I received its license from the Turkish Ministry of Treasury on and immediately commenced accepting risks within The Turkish marine insurance sector being the first local P&I insurance company in Turkiye.
3 state enterprise insurance companies, Güneş Sigorta, Halk Sigorta and Ziraat Sigorta and 3 local P&I Club correspondents Metropol Shipping AS, Omur Denizcilik AS and Vitsan AS consociated to establish Türk P&I.
A representative from the Ministry of Shipping, Transportation, Communication is a continuous member of the Board of Directors.

4. TÜRK P&I
Türk P&I keeps continuous and close contacts with the local authorities and relevant Ministries as well as Turkish Chamber of Shipping on a daily basis.
Türk P&I is member of the Liability Insurance Committee of The Association of Insurance Companies of Turkey.
In the fields of shipping and other maritime affairs, Türk P&I is extensively involved in and plays an active role in the governmental legislation programs and their feasibility studies with the relevant ministries and other governmental authorities.

5. Why Having a Local Insurer is a Plus?
In addition to the listed advantages in the previous slide we will talk about privileges of having a local P&I insurer in Turkey:
advantages in communication – speaking the same language
developing tailor made products as per the needs of the local sector
swift and efficient claim handling
marine insurance know-how
improving the ship standards by loss prevention actions
tax income – inflow of international currency into an economy

6. P&I Insurance Cover
When you conduct a service to the third parties and use your facilities, you have various exposures when something goes wrong.
The same applies to Shipowners or Operators.
The three marine insurances, H&M, Cargo and P&I can sometimes be linked with each other in terms of completing the cover needed within the Maritime Industry but in most cases they clash with each other as they try to protect their own clients under the different covers they provide.

7. Which legal liabilities?
P&I insurance basically provides an insurance cover at sea for legal liabilities to third parties, environmental risks, crew claims, etc.
Which legal liabilities?

8. Risks covered by Türk P&I
Personal injury / illness / death
Collision
Wreck removal
Damage to fixed and floating objects
Accidental Pollution
Cargo damage/shortage
Fines
Stowaways
Other

9. Personal injury / illness / death
P&I insurance covers an owner’s liability for death, personal injuries and illness of crew members which can occur on board an entered vessel, including death or injury of passengers, stevedores, pilots and any third party visitors to the ship.

10. Personal injury / illness / death
Also following expenses are covered;
- Repatriation & medical costs of sick or injured crew,
Loss of crew members’ personal effects
Crew substitute expenses
Sick wages
Damages / compensation

11. Collision No cover of the member’s ship 1/4th of damage to other ship
or 4/4th with additional premium
Some consequential liabilities e.g., pollution, personal injury

12. Wreck removal
Incidental Costs for lifting, removal, breaking, lighting or marking of an entered ship
Liabilities incurred by a member as a result of the raising, removal or breaking of the wreck of an entered ship
Liabilities incurred because of the presence or involuntary shifting of the wreck of an entered ship
Liabilities incurred, including costs/expenses incidental to the removal and disposal of cargo and bunkers on board

13. Damage to fixed & floating objects
Physical damage caused by an entered ship to:
– docks and terminals
– fixed and floating objects
– fishing nets
– coral reefs

14. Pollution Typical claims arising out of pollution
Liabilities for loss of and/or damage to wild life and environmental contamination and pollution
Clean up costs
Preventive and mitigation costs and measures
Costs of complying with Government directions
Salvor’s compensation for pollution prevention

15. Pollution: Clean up costs

16. Towage Claims arising during the towage of an entered ship
Claims arising during the towage services provided by an entered ship
towage contracts must have been approved by P&I insurer

17. Cargo damage and shortage
The PandI Clubs are not cargo underwriters but they provide insurance for the members’ liability towards the cargo carried onboard including but not limited to; • liabilities for loss of or damage to the cargo • disposal costs of damaged cargo • cargo’s proportion of GA

18. Heavy weather: wet damage/loss

19. Finished steel products

20. Fines Related to Cargo Related to Customs Related to Immigration
Related to Accidental pollution
Discretionary

21. Stowaways
- Costs of repatriation - Additional costs for security - Pre and post departure stowaway checks - Costs of disembarkation and accommodation of stowaway - Costs of arranging emergency documentation

22. The Rules Governing Türk P&I Operations
Local Rules
6102 numbered Turkish Commercial Code Articles 1247 – 1271 on carriage of passengers and their luggage by sea.
General Terms published by the Under Secretariat of Treasury, Directorate of Insurance on the compulsory insurance of marine crafts for the owners’ third party liabilities.
Tariffs published by the Under Secretariat of Treasury, Directorate of Insurance on limits of liability of compulsory insurance of marine crafts for the owners’ third party liabilities.

23. The Rules Governing Türk P&I Operations
International Rules
(a) Conventions which are binding for Turkey (due to being in force and directly applicable above the Code due to Turkish Constitution Article 90)
LLMC on limitation of liability from the maritime claims.
(b) Conventions which are not yet binding for Turkey (since not yet ratified)
Nairobi Wreck Removal Convention on Wreck Removal.
(c) Conventions which are not yet ratified by Turkey BUT Turkey incorporated most of the rules of such Conventions within its local laws.
Athens Convention 2002 on carriage of passengers and their luggages by sea.

24. Reinsurance Arrangements of Türk P&I
Türk P&I has its reinsurance arrangements under a quota share agreement with two major players within the Pandi Industry as well as on facultative basis with some others.
The claims are handled directly by Türk P&I by an experienced claims team in Istanbul.

25. Türk P&I’s Products
Türk P&I provides the following specially tailored products in addition to Classic P&I Cover for Cargo Ships:
Liability Insurance for Small Passenger Vessels and Ferries
Liability Insurance for Fishing Boats
Liability Insurance Diving Schools and Boats
Liability Insurance for Private and Commercial Yachts including Touristic Yachts

26. Aims
To prevent an incident occurring
To mitigate the consequences of an incident
To prevent it happening again by working with Members.
How?
giving seminars,
conducting loss prevention,
making ship visits,
management audits,
making analysis of happened claims

27. Objectives
Playing a key role in marine liability insurance sector
Providing P&I coverage for Turkish flagged ocean going vessels engaged in international commerce
Providing P&I coverage for all ocean going vessels flying foreign flag
Being one of the recognized P&I Club in all over the world.