vehicle that will only do business through brokers, Lloyd's List has reported.

The new insurance facility will cover up to $15 million per accident, excluding US flagged ships from cover.

No limit has been set on the amount of business to be written, but the firm believes there is great potential for fixed premium P&I insurance expansion.

Terra Nova said that up to ten percent of tonnage now entered in the club mutual system, would be better suited to fixed premiums with an individual limit, especially smaller vessels operating in smaller areas.