Mutual associations protecting shipowners in respect of risks not covered in the marine insurance market. The shipowner enters his vessel on a tonnage basis that determines his levy or call at the beginning of the financial year. If claims are heavy a further levy may be demanded. The most important P & I classes are: 1. Protection. Covers shipowner in respect of liability for loss of life or personal injury, damage to immobile objects, onequarter Running Down Clause, oil pollution and life salvage. 2. Indemnity. The basis is ‘pay to be paid’ and means reimbursing shipowners who have indemnified cargo owners for damage caused by negligence of the crew. There are two other classes: war risks and freight war risks. P & I Clubs accommodate 90 per cent of the world’s merchant tonnage. See BAIL CLAUSE.