Third Party Claims against P&I Clubs and the “pay to be paid” Rule
The “pay to be paid” Rule is a fundamental component of Protection & Indemnity (hereinafter referred to as “P&I”) insurance policies, which requires a Club Member to discharge his liabilities to the injured third party before he can be indemnified by the P&I Club. If the Club Member cannot compensate the third party as a result of insolvency, the third party is denied full satisfaction