South American P&I Correspondents Association
On the daybreak of the new millennium, a process of regionalization and integration was growing in South America – the MERCOSUR – which gave the chance to a group of well-established P&I Commercial Correspondents of working together. Upon such experience, they realized that there was a relatively common environment in their respective countries and – encouraged by an underlying friendship - they met to discuss about different matters concerning their work and to share new ideas; at the end of the day, it was also a good reason to see each other and have a good time in the meantime.
Guided by such common feeling of fellowship, the handful of colleagues considered that it was time to create an organization with the aim of opening up to other colleagues. The South American P&I Correspondents was then founded in 2001 in Montevideo by Mr. Andrew Cave (Cave & Cia Ltd of Valparaiso), Capt. Alejandro Laborde (Chadwick Weir Navegación SA of Montevideo), Mr. Alberto Trigub (Pandi Liquidadores SRL of Buenos Aires), Mr Carlos Augusto (Representaçoes Proinde Ltd of Santos) and Mr. Joao Frumento (Van Verp & Frumento - P&I Services - Ltd of Paranaguá). A few years later, in 2004, the Association adopted in writing its constitutive statute, signed on the 9th of July in Viña del Mar.
The purpose pursued by the Association was clear: to create a space for South American Correspondents to meet, to share experiences and to open a new channel of communication between them, the P&I Clubs and other organizations around the world. Soon after, the Association expanded its boundaries to include the rest of Latin-America which encountered common interests and a similar environment.
Nowadays, the Association has 11 members in 8 different countries. See more in Membership.
P&I stands for Protection and Indemnity, which is one of the two main insurances taken by shipowners and other ship's operators (such as managers and charterers). P&I covers, in general terms, their Member’s liability against third parties.
This type of cover is provided, mainly, by P&I Clubs: non profit-making mutual associations owned by their Members. The 13 major Clubs are part of a pool called International Group of P&I Club (IGP&I) insuring altogether more than 90% of the worldwide gross tonnage. There are also other P&I organizations and other insurers which provide cover for similar risks.
The managers of the P&I Clubs concentrate vast experience and expertise handling claims on behalf of the Club and their Members. To do so efficiently, they have a network of Correspondents all around the globe, who assist with their local knowledge, expertise and networking.
The P&I Commercial Correspondents act, thereafter, as independent advisers to the Clubs and their Members within their area of influence. Normally, the Clubs do not appoint agents, but have a network of correspondents instead who are listed in their books to assist in case of need.
The aim of SAPIC is to have a simple but serious organization of P&I Commercial Correspondents, for the benefit of its Members, the P&I Clubs and other related and compatible underwriters.
The Association has no corporate status, and their members retain the faculty of conducting their individual professional services and relationships with all the companies they act for.
The common pattern of the Members of SAPIC is that they are all listed by the Clubs as commercial correspondents, they are independent and purely devoted to act as correspondent.
According with art 3 of the statute, the Association pursue the promotion of three general purposes, which can be summarized as follows:
(i) Unity among well-established correspondents;
(ii) High standards of service in cost-effective manner;
(iii) Communication and relationship with P&I Cubs and other associations.
In addition, the activities of SAPIC are ruled by the following principles: (i) transparency; (ii) independence; (iii) communication; (iv) quality service; (v) efficiency and; (vi) mutual support.
The Association meets at least once a year on the Annual General Meeting (AGM), where all the membership is invited to discuss the running, finances and projects of the Association and consider the new applications to join.
The Association is supported and financed by its Members. Its funds come mainly from the Incorporation Due of the joining Members and from the Annual Membership Dues, which are the contribution of each Member as agreed in every AGM.