Building India’s P&I Capacity: DGS Highlights Need for Indian P&I Clubs
Shri Ash Mohomad, Deputy Director General of Shipping (Merchant Shipping Law Branch, FAAPP), represented the Directorate General of Shipping (DGS), MoPSW, GoI at the Dock to Docket event organised by Khaitan Legal Associates and Quadraant Legal in Mumbai. The event marked the launch of a dedicated Marine & Admiralty Law Practice and convened maritime experts, legal professionals, and industry stakeholders to deliberate on the evolving dynamics of maritime liability, insurance frameworks, and operational risks.
In his address, Shri Mohomad highlighted the strategic significance of establishing Indian Protection & Indemnity (P&I) Clubs to strengthen the country's maritime and legal infrastructure. He emphasized that marine insurance accounts for merely 2% of the total non-life insurance segment in India (as of FY18), a low figure for a country with over 1,500 vessels in its national fleet. India contributes just 0.8% to global shipping tonnage yet pays nearly USD 15 million annually in premiums to foreign P&I clubs— highlighting the need for domestic risk retention and financial autonomy.
Shri Mohomad noted that Non-IG P&I clubs now cover 40% of the global fleet, reflecting a shift beyond traditional IG groups. Aligning with this, DGS shall initiate a feasibility study to assess the creation of Indian P&I Clubs. The study will explore governance, financial sustainability, legal frameworks, and reinsurance needs for Mutual and Fixed Premium P&I entities.
He also emphasized that the changing risk landscape—including cyber threats, green shipping compliance, and digital operations—requires smarter, resilient insurance models tailored to Indian needs. As India moves towards Maritime India Vision 2030, domestic P&I structures will be key to improving arbitration, supporting digital and environmental transitions, and positioning India as a global leader in maritime legal and insurance innovation.
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