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P.P.I. clause

P
Typography

P.P.I. clause. Contracts of marine insurance, which contain certain words that indicate that the parties dispense with all proof of interest, are still used despite being void and unenforceable.

In modem times they may be commercially necessary, especially if it is impossible to prove an insurable interest, e.g., the insurance against the risk of new government taxes on cargo, or a shipowner’ s anticipated freight. A p.p.i. clause was fixed to the policy but may not be commonly used today. The clause usually states that “In the event of a claim, it is hereby agreed that this Policy shall be deemed sufficient proof of interest. Full interest admitted.” If the policy had to go before a court, the clause was detached.

 

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