Exam Question
(a) What is P&I clubs? Describe how P&I clubs collect fund from ship-owners. (8)
(b) What are the risks that are covered under the term "protection" and "indemnity"? (8)
Class 1 (Chief Engineer)
Engineering Management
📅 Feb 2025
Reference Answer
### (a) P&I Clubs and Fund Collection
#### 1. Definition and Nature of P&I Clubs
A Protection and Indemnity Club, or P&I Club, is a non-governmental, non-profit mutual insurance association that provides risk pooling for its members. The members are typically shipowners, operators, and charterers. Unlike commercial insurance companies that operate for profit, P&I Clubs operate on the principle of mutuality, where members pool their resources and liabilities 'at cost'.
Key characteristics include:
#### 1. Definition and Nature of P&I Clubs
A Protection and Indemnity Club, or P&I Club, is a non-governmental, non-profit mutual insurance association that provides risk pooling for its members. The members are typically shipowners, operators, and charterers. Unlike commercial insurance companies that operate for profit, P&I Clubs operate on the principle of mutuality, where members pool their resources and liabilities 'at cost'.
Key characteristics include:
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