Class 1 (Chief Engineer) Engineering Management 📅 Apr 2021

Exam Question

(a) What are P & I clubs? Describe how P & I clubs collect fund from ship-owners.

(b) Waht are the risks that are covered under the term "protection" and "indemnity"

Reference Answer

### (a) P&I Clubs and Funding Mechanism
**Definition:**
A Protection and Indemnity Club (P&I Club) is a non-profit, mutual insurance association that provides risk pooling for its members. The members consist primarily of ship-owners, operators, and charterers. Unlike commercial insurance companies that operate for profit, a P&I Club operates on the principle of mutuality, meaning the members are both the insured and the insurers. The club's objective is to provide insurance coverage "at cost."
**Funding Mechanism:**

Full answer on MeoMock — surveyor-grade reference answers for 7,000+ written exam questions.

View plans Browse library

← Browse more questions

Prepare on Android — MeoMock on Google Play