In this clause, the insurer is liable to pay the 3/4th of the claim to the assured, which arises from the legal liability as a result of collision.
The insurer indemnifies the assured of the 3/4th of the sum paid.
Remaining amount is paid by the P and I club.
Points agreed for this clause are: loss or damage to other vessel, delays to other vessel, general average, salvage, damage to property of the other vessel, etc.