Exam Question

### (a) P&I Clubs and Fund Collection
**1. Definition of a P&I Club:**
A Protection and Indemnity (P&I) Club is a non-governmental, non-profit, mutual insurance association owned and controlled by its members. The members, who are typically shipowners, operators, and charterers, pool their resources and risks to obtain insurance coverage at cost. The primary purpose of a P&I Club is to provide cover for third-party liabilities and expenses arising from the ownership and operation of ships, which are not typically covered under standard Hull & Machinery (H&M) or Cargo insurance policies.
There are 13 major P&I Clubs, forming the International Group (IG), which collectively insure approximately 90% of the world's ocean-going tonnage.