Representative Zach Nunn of Iowa, a member of the House Financial services Committee has issued a letter inquiring about American Club, which has apparently insured many vessels suspected to have Iranian links. According to a Bloomberg article, American Club insures more tankers suspected of violating US sanctions than any of its allies. In June 2023, tanker named Sincere 02 picked up oil at an Iranian port and traveled across the Persian Gulf on its way to the United Arab Emirates. U.S. sanctions forbid Western companies from knowingly doing business with Iran. But for the next seven months, long after an advocacy group publicized Sincere 02’s voyage, the ship continued to carry proof of insurance from American Club, the smallest of the 12 companies that cover most of the world’s oceangoing ships against spills and accidents, and the only one based in the U.S.
American Steamship Owners Mutual Protection and Indemnity Association, Inc. (the American Club) was established in New York in 1917. It is the only mutual Protection and Indemnity Club domiciled in the United States – indeed, in the entire Americas.
The Club is a member of the International Group of P&I Clubs, a collective of twelve mutuals which together provide Protection and Indemnity insurance for some 90% of all world shipping.
Protection and Indemnity insurance (commonly referred to as “P&I”) provides cover to shipowners and charterers against third-party liabilities encountered in their commercial operations. Responsibility for damage to cargo, for pollution, for the death, injury or illness of passengers or crew and for damage to docks and other installations are examples of typical exposures.
Jeffrey Newman is a whistleblower lawyer whose firm represents whistleblowers in healthcare fraud under the False Claims Act (FCA) also whistleblower claims brought under the SEC whistleblower program for violations of securities regulations including insider trading cases. He also handles cases involving evasion of US sanctions against China, Iran and Russia and other sanctioned entities and he can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
