Steamship Mutual has said it will extend the payment deadline for the first protection and indemnity instalment of the policy year to help cash-strapped shipowners affected by the coronavirus pandemic.
In a note to members, the London-based P&I club said it would extend the payment until 20 May.
Shipowner members who stayed with the club at the annual 20 February policy renewal have also been rewarded with a 7.5% premium refund.
Steamship Mutual said: “This is intended to offer some assistance to members, given the current disruption to trading and finances. The board will continue to review the position in light of further developments in the Covid-19 crisis.”
Steamship Mutual’s head office in London has been working remotely since 16 March, in line with UK efforts to contain the spread of the virus.
Steamship Mutual is one of the most financially robust insurers among the 13 members of the International Group of P&I Clubs, and is in a strong position to ease the financial pressure on its members.
The club last reported free reserves of $467m in February 2019 and a stable "A" rating with Standard & Poor's. However, the recent fall in equity markets may well have impacted on its free reserves and financial position.
In a separate development linked to the coronavirus, P&I clubs have said they are being inundated by requests for information from shipowners about whether P&I will cover them for coronavirus-related claims.
Some cover for claims emerging from the crisis, including delays, financial penalties, crew illness and freight, demurrage and defence, are provided on a discretionary basis.
Marsh JLT Specialty, the industry’s largest insurance broker, hosted a webinar for clients around the world this week to offer some indication of how much shipowners can claw back coronavirus-related losses from their P&I clubs.
The webinar was hosted by Standard Asia managing director David Roberts; Ella Hagell, divisional director of people risks at Britannia P&I; and Mike Walls, marine practice leader at Marsh JLT Specialty Singapore.
More than 270 clients participated in the webinar, asking 70 questions to the industry experts.
