The topic of this paper is insurance to the benefit of a third party, i.e. insurance protecting a person other than the one effecting the insurance contract under P&I (Protection and Indemnity) insurance which is the central liability insurance in the shipping context, covering liability for personal injury and death, and damage to or loss of property.
The insurance contract is a contract whereby the insurer, the P&I Club, will pay compensation to the person who entered into a contract, i.e. the member, if the defined events occur. However, it can happen that the person receiving the compensation is another than that one who effected the insurance. In this context, co-insurance will apply.
Consequently, the provisions found in the insurance contract usually addressed to the member may be also addressed to the co-assured considering that he may be liable for damages to persons, damage to cargo, pollution and expenses covered by the club in preference to and/or jointly with the member.
Therefore, in a comparative approach, the question is to what extent the provisions addressed to the member may also be addressed to the co-assured. Furthermore, to what extent the breach caused by the member will affect the cover of the co-assured.
These issues are examined in this paper and, despite the limited literature, the comparison between the conditions and, thus, the Scandinavian, English and Brazilian systems were made, even if in a general perspective.
KEYWORDS: co-insurance, P&I insurance, third party, co-assured, identification, Scandinavian system, English system, Brazilian System, P&I Club, SKULD P&I CLUB, GARD P&I CLUB and UK P&I CLUB.