The new CEO of the London P&I Club starts work on Monday as disputes over two of its largest-ever claims return to the spotlight.
James Bean takes charge as arguments continue in the London courts over Spain’s efforts to enforce a near $1bn judgment against the club following the 2002 sinking of the Prestige tanker and subsequent oil spill.
The start of the appeal by the Spanish government came amid reports that the new left-leaning Sri Lankan government will launch a broad investigation into events surrounding the sinking of the X-Press Pearl in May 2021.
The issues come as Bean looks to continue the rebuilding of London, the third smallest of the 12-strong International Group of P&I Clubs.
Bean takes over from a club with an improved set of results for 2024, with free reserves and investment income up and claims down, following two “dreadful years”, according to insurance broker Tysers.
In its annual protection and indemnity report, Tysers said Bean “takes on a wounded beast which still has some way to go to a full recovery”.
He joins from NorthStandard where the senior executive played a key role in the 2023 merger between the two P&I clubs.
Bean’s appointment led to speculation of further tie-ups in the sector, but outgoing CEO Ian Gooch told TradeWinds earlier this year that the club would be looking to expand as an independent player.
Evolving challenges
“My focus will be on maintaining our excellent performance and continued growth while helping our membership navigate the evolving challenges of the maritime industry,” said Bean in a statement.
He said that he would work towards “ensuring the Club remains a leading independent mutual marine P&I insurer”.
His in-tray will include monitoring the legal dispute involving the 81,000-dwt Prestige (built 1976), the latest stage of a long-running saga that followed rulings in the UK and Spain.
The Spanish authorities have sought a payout from the club awarded by its national courts that is capped at $1bn, while London relies on a finding by the English courts that awards should be decided at arbitration.
Spain and France — which suffered their worst-ever spills in the Prestige disaster — are appealing that decision in London.
The club also provided P&I cover for the 2,756-teu X Press Pearl (built 2021), which sank resulting in thousands of tonnes of plastic pellets being spilt and washing up on Sri Lanka’s coastline.
The worst pollution incident in Sri Lankan history led to the re-writing of rules about how the cargo would be transported by sea.
Al Jazeera last week reported shortcomings in the former government’s response to the disaster. A parliamentary report published in September expressed concerns over payments made to affected communities.
Vijitha Herath, the country’s public security minister, told the network that any inquiry would be wide-ranging but did not give further details. “We will leave no stone unturned,” he said.
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