GUIDELINES FOR
CORRESPONDENTS
SEPTEMBER 2022

GUIDELINES FOR CORRESPONDENTS

INTRODUCTIONGUIDELINES FOR
CORRESPONDENTS
As the local “eyes and ears” of the Clubs,correspondents perform a key role looking after theinterests of Clubs and their Members around the world.
These Guidelines have been prepared to enable
correspondents to work closely with the Clubs tocontinue to meet Members’ expectations for the deliveryof the highest quality services.
The Guidelines provide the foundation for a common
approach to the handling of incidents and promotea consistent response by all correspondents when
instructed by a Club which is a Member of theInternational Group of P&I Clubs.1
The Guidelines supplement individual Clubs’ instructions
to correspondents and cover issues common to all
Clubs.

1

www.igpandi.org

03

06

01

GUIDELINES FOR CORRESPONDENTS

LISTING OF CORRESPONDENTS
The listing of a correspondent does not represent
any contractual or agency relationship between
the correspondent and a Club, nor does it createa right to be included in any subsequent list.
Correspondents are not agents for the Clubs and are
not automatically authorised to accept service ofproceedings on behalf of the Clubs or any subsidiaryor associated companies. The correspondent,
although listed and named by a Club, will usually
act for the shipowner/charterer whose ship isentered with the Club.

02

GUIDELINES FOR CORRESPONDENTS

A) BRIBERY
Clubs have best practice systems to deal
with bribery, including ‘facilitation payments’,and financial crime. Those systems extend to all
correspondents and service providers. Compliancewith the requirements of individual Clubs’ strict
bribery prevention policies and anti-bribery laws2
must be in addition to correspondents’ compliancewith any other anti-bribery legislation that may
affect them.

B) MONEY LAUNDERING

Correspondents must be contactable 24 hours a day
and they must keep the Club advised of changes tostaff/office communications details. Correspondents
should regularly check their entries on Clubs’
websites and apps to verify that the Club has
the correct contact details.

Correspondents should have systems in place toensure they and their subcontractors and service
providers do not contravene anti-money launderingor tax evasion legislation. Such systems should
include procedures to identify their clients andensure that transactions are legal3.

GOVERNANCEC) SANCTIONSCorrespondents must operate to the highest
ethical standards and have appropriate systems
and procedures in place. It is important to notethat failure to comply with these requirements
could mean a correspondent risks delisting.

Correspondents must be aware of economic andtrade-related prohibitions and restrictions caused byapplicable sanctions legislation imposed by States
or international organisations. Such legislation may
affect a Member and/or the trade they undertake
either directly or indirectly and can affect theassistance Clubs are able to offer Members.
In particular, Clubs may not be able to assist
Members in providing a letter of undertaking
or bank guarantee to secure a claim.
2

for example, the UK Bribery Act 2010 and the United States
Foreign Corrupt Practices Act 1977.

3

for example, the UK Proceeds of Crime Act 2002 (POCA),
part 7, and the Criminal Finances Act 2017, part 3.

07

08

GUIDELINES FOR CORRESPONDENTS

GUIDELINES FOR CORRESPONDENTS

It is the correspondent’s responsibility to ensure that
all third parties that they instruct or remit funds to are
not listed as designated persons or organisations on
any trade or economic sanctions lists, for example,
those published and maintained by the United
Nations, the United Kingdom, the European Unionand the United States.

F) CLIENT MONEY

The situation on sanctions can change and thecorrespondent should contact the Club concernedG) PROFESSIONAL LIABILITY/ERRORSAND OMISSIONS INSURANCE

for specific advice.

It is prudent for correspondents to have adequate
errors and omissions insurance that provides
protection for their services, or those which extend
to ownership of an associated company, arising fromclaims of negligence or failing to performtheir professional duties.

Where permitted by local regulations,correspondents should operate a designatedclient bank account for the receipt of funds to pay
claims. This account should be separate from thecorrespondents’ day to day business accounts.

D ) D ATA P R O T E C T I O NCorrespondents should be aware that Clubs,correspondents and service providers are subject
to data protection legislation4. Correspondents
will routinely receive personal data for claimants
and crew members. “Personal data” refers to
information about an individual, such as theirname, job description, date of birth, e-mail address,
mailing address or health-related data. All personal
data should be handled and stored carefully anddistributed securely and no more widely thannecessary.

E ) S L AV E R Y A N D H U M A N
TRAFFICKING
As part of the Clubs’ business and supply chains,correspondents must conform with the Clubs’ zerotolerance position in respect of modern slavery andhuman trafficking, including compliance with any
relevant legislation5.
4

for example, the UK Data Protection Act 2018 andthe EU General Data Protection Regulation (GDPR).

5for example, the UK Modern Slavery Act 2015.

03

CONFLICTS OF INTEREST
A conflict check must be undertaken as soon as
instructions are received and the Club or Clubs must
be informed of any potential conflict immediately.
The most common circumstances where acorrespondent may encounter a conflict of interest
involve an owner and charterer (for example, when
they have a cargo problem at a discharge port)
where:
a. both parties are entered with the same Club,b. the parties are entered in different Clubs and thecorrespondent is listed by both Clubs, orc. the correspondent, or an associated company,
are also representing cargo interests.

09

10

04

GUIDELINES FOR CORRESPONDENTS

REPORTING
In addition to Clubs’ websites, correspondents
are reminded that there is a vessel search facility
for owned vessels on the IG website atwww.igpandi.org/ship-search/

A ) F I R S T N O T I F I C AT I O N
A correspondent may be notified of an incident or
claim from a number of sources other than the Club,
such as the Member, the ship’s master, local agent,owner, charterer or directly from a claimant or theclaimant’s insurer.
For urgent matters (death, serious illness and injury,
pollution, ship arrest, collision, groundings and serviceof legal proceedings), the first notification to the Clubshould be made by both telephone and email to
the Club. For non-urgent matters, the first notification
should be sent by email. In order to minimise any
delay in obtaining a response when sending anemail, the correspondent should try to identify theclaims team or individual and only use the Club’s
general email address if this cannot be done.
Correspondents should be familiar with the risks
covered by each Club, as set out in their rules.
Not all Members will be covered for all these risks
and so correspondents should seek confirmationof the extent of the cover from the Club. However,the correspondent is recommended not to stop
dealing with matters whilst waiting to receive suchconfirmation.

12

GUIDELINES FOR CORRESPONDENTS

The first notification to the Club should include:- The ship’s name and IMO number.
- Description of the incident including the date
and the port/place where the incident occurred.
- The party requesting assistance and thenature of the assistance requested.
- Any steps taken by the correspondent.
- The current status and proposed future action,
including details of any deadline/time limits which
the Member may be required to satisfy.

GUIDELINES FOR CORRESPONDENTS

In the initial period following an incident, “no news
is good news” does not apply and reports (including
service providers’ reports)
will be required on a frequent basis, including:- Details of the property damaged/person or persons
injured etc(as applicable).
- Cause of the incident.

- Details of security demands and reasonableness.

- Steps to be taken to protect the Member’s position,
including measures to preserve the Member’s rightof redress against third parties, including any time
limits.

- Contact details for the correspondents
and any service providers appointed.

- Claimed amount and any assessmentof/material changes to quantum.

B) SUBSEQUENT REPORTS
TO THE CLUBCommunication by phone remains extremely
important and can be a useful addition to email
reporting. It is important that correspondence isdocumented, so correspondents should avoid
exchanges via social media, including apps suchas WhatsApp and Messenger. Surveyors, lawyers orother experts must be encouraged to give you, as
correspondent, timely updates which add value for
the Club and Member. Where possible and unlessotherwise instructed, the correspondent should
ensure that all information from these sources ischannelled through them and that they control
the case locally.

- Current status of any negotiations withclaimants or their representatives.
- Any hearing dates.

C. PERSONAL INJURY REPORTS
Reports into personal injury incidents can by theirvery nature contain graphic images of deathand injury. As files are often audited internally or
externally by staff who may be unfamiliar with suchclaims, correspondents are encouraged to provide
a warning on such reports stating that the reportcontains images which some people may find
upsetting.

13

14

05

GUIDELINES FOR CORRESPONDENTSAPPOINTMENT OF LOCALSURVEYORS OR OTHER THIRDPA R T I E S ( S E R V I C E P R O V I D E R S )Ideally the correspondent should obtain approval
from the Club before any service provider isappointed. Where prior approval cannot be
obtained, the correspondent may appoint theservice provider to avoid delay but the Club must be
notified at the earliest opportunity. The best service
provider suitable for the task must be appointed,
provided they are not conflicted, regardless ofwhether they are in-house or independent.
If the Club sends an expert to attend, thecorrespondent should provide them with any
assistance necessary, including promoting coordination with any attending local service providers.

06

GUIDELINES FOR CORRESPONDENTS

A) TIME EXTENSION
No time extension is to be granted to any party
without prior authority from the Club or the Member.

B) CLAIMS SETTLEMENT
Correspondents should not enter into settlement
negotiations or agree to any settlement proposal
without prior authority. An agreed settlement must
include a receipt and release document, approvedby the Club in advance, and the cancellation andreturn of any guarantee.
If the Member no longer exists, they will be unable
to pay claims. Other than in death and personal
injury matters, if no guarantee has been issued it isunlikely the Club will be able to assist further and thecorrespondent may be asked to close their file andsubmit a final invoice.

CLAIMS HANDLING
Claims may be pursued locally or in another country
because of contractual terms or by agreement
between the parties. If a correspondent receives
claims documents, they should seek instructions
from the Club. The Club or Member may wish tohandle the claim; alternatively, the correspondent
may be authorised to handle the claim. If so, thecorrespondent should provide as soon as possible theiropinion on the merits of the claim and best estimate of
the overall claim and fee exposure. The best estimate
should be periodically updated to assist the Club insetting a reserve. If a claimant starts legal proceedings,
the Club should be advised immediately.

C) COURT PROCEEDINGS –A R B I T R AT I O N – M E D I AT I O N
No claim is to be taken to court, arbitration
or mediation without prior instructions fromthe Club and Member.

10 55

16

07

GUIDELINES FOR CORRESPONDENTS

GUIDELINES FOR CORRESPONDENTS

Clubs do not provide anticipatory security or security
for an unlimited amount. Club security only covers a
Member’s legal liability and will be for a quantified
claim amount, which should be referred to in theterms of the guarantee. It is preferable that theamount of the guarantee includes interest and costs.

GUARANTEESThe correspondent should inform the Club
immediately if they receive a request for security
and/or a threat of arrest or detention of the shipor another asset. In order to consider whether it isappropriate for the Club to provide security, the Club
must be informed as soon as possible of the nameof the beneficiary and the quantum and form of
security requested.

08

The provision of Club security is discretionary anddepends on a number of factors, regardless ofthe guarantee amount or pressure from interested
parties. The security may be provided directly tothe claimant by the Club or, by agreement, via thecorrespondent.
A correspondent must not agree to issue a letter ofundertaking (LoU), or other form of security, without
the prior approval of the Club. A Club will not
authorise a guarantee to a sanctioned entity.
The following forms of security may be considered
in order of preference:
1. LoU. Clubs recognise that this is not an option
for all claimants in certain jurisdictions.
2. Interim security to be replaced by a bankguarantee or bail bond within a specified
time-frame.
3. A bank guarantee or bail bond with nointerim security.

F R E I G H T, D E M U R R A G E& DEFENCE COVER (FD&D)
Clubs offer a separate cover for their Members’
legal costs in defending or prosecuting certain typesof claims. The involvement of the correspondent in
FD&D matters will vary, and will often be minimal, as
legal input is often necessary. The correspondent,
whether legal or commercial, should determine theextent of Club cover and should not assume thatany fees will be paid directly by the Club.

09

CONTINGENCY PLANNING
The correspondent’s contingency plans should
include a business continuity plan and a plan forhandling large claims and major casualties. Their staff
must be familiar with these plans and their roles withinthem. Plans and operational arrangements should be
regularly tested and updated.

10 75

18

10

GUIDELINES FOR CORRESPONDENTS

INVOICING
Correspondents should be familiar with the invoicing
requirements of each Club. Some Clubs use the“Feesable”6 system which enables correspondents
and third party suppliers to use a universal invoice
format.
In case of doubt, a correspondent may seek
clarification from the Club as to who will be
responsible for fees. For a Member’s own
surveys, or matters not covered by Clubs, it is thecorrespondents’ responsibility to make arrangements
for the payment of fees and disbursements. In thesecircumstances, the correspondent may request
a payment in advance from the Member.

A) INVOICING INSTRUCTIONSCorrespondents should check with the Club
who the invoice should be addressed to.
Invoices should contain the Club’s and thecorrespondents’ references, together withthe beneficiary’s banking details.
Fees and disbursements must be shown separately.
The fee calculation should show the hourly or
daily rates and the time spent. Receipts or otherevidence should be provided for disbursements.
Correspondents should not settle any third party’s
invoice without the authority of the Club.

6

www.igfeesable.net

GUIDELINES FOR CORRESPONDENTS

B ) P AY M E N T I N S T R U C T I O N S
Clubs prefer to make electronic payments forinvoices. The beneficiary of the payment mustmatch the person or company issuing the invoice.

C) INTERIM INVOICESTo assist in controlling costs, interim invoices(including those of service providers) should besubmitted unless the Club decides otherwise.

D) FINAL INVOICES
Procedures for the submission of final invoices
will vary from Club to Club. A final invoice, clearlymarked as such and including any outstanding
service providers’ costs, should be submitted assoon as a case has been concluded or when the
involvement of the correspondent is no longer
required, normally within three months unlessthe Club specifies otherwise.

E) INVOICE ENQUIRIES
Occasionally, clarification of invoices or items
contained in them may be required. For invoices tobe paid by Clubs, in the event of a dispute between
the Club and the correspondent, the Club will settle
the undisputed portion of the invoice as quickly
as possible.

10 95

20

11

GUIDELINES FOR CORRESPONDENTSPROVISION OF GENERALI N F O R M AT I O N O N L O C A L
M AT T E R S
Correspondents are encouraged to advise Clubsof general information relevant to ships trading
within their local area. Clubs may wish to include thisinformation in their websites, apps and publications
for the benefit of their Members.

12

P&IQ
Clubs appreciate those correspondents investing in
training via the P&IQ course and the Clubs continue
to recommend this course to correspondents.
P&IQ Modules - The International Group of P&I Clubs
www.igpandi.org/pandiq-modules

GUIDELINES FOR CORRESPONDENTS

REFERENCES
The International Group of P&I Clubs
www.igpandi.org
UK Bribery Act 2010www.legislation.gov.uk/ukpga/2010/23/contents
Criminal Finances Act 2017www.legislation.gov.uk/ukpga/2017/22/contents/
enactedUnited States Foreign Corrupt Practices Act 1977
www.justice.gov/criminal/fraud/fcpa/docs/fcpaenglish.pdf
UK Proceeds of Crime Act 2002 (POCA)
www.legislation.gov.uk/ukpga/2002/29/contents
UK Data Protection Act 2018www.legislation.gov.uk/ukpga/2018/12/contents/
enactedGDPR (EU General Data Protections Regulation)www.eur-lex.europa.eu/eli/reg/2016/679/oj
UK Modern Slavery Act 2015
www.legislation.gov.uk/ukpga/2015/30/contents/
enactedFeesable billing system
www.igfeesable.net

20 15

C O L L E C T I V E LY S T R O N G E R

For more information about the International Group,
please visit our website at igpandi.org
or contact the International Group Secretariat:
International Group of P&I Clubs
78/79 Leadenhall Street, London, EC3A 3DH, UK
Tel: +44 (0)20 7929 3544
email: secretariat@internationalgroup.org.uk

igpandi.org

The International Group Clubs