This page contains answers to Seagull CES test about P&I clubs (Protection and Indemnity), and serve as a database of questions and answers, using which seafarer can prepare to exams for getting certificate of competence, or just to challenge yourself with knowledge in this theme.
CBT CD 0028 – Protection and Indemnity.pdf
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Amount of questions: 25.
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According to the module, which TWO of the following are activities performed by Protection and Indemnity Associations? Select TWO correct answers:
Investigation and processing claims.
Delivering advice on prevention and limitation of member’ship liabilities.
Investigating all personal injury accidents on board behalf of the member.
Monitoring the operation of members vessels in an attempt to avoid claims.
According to the module, which TWO of the following claims, related to people, are covered by Protection and Indemnity Association insurance? Select TWO correct answers:
Medical expenses and repatriation of a sick crew member.
Expenses in connection with stowaways and refugees.
The costs of arranging additional security in a port, where a high security risk exists.
Travel costs when extra crew are required to join a vessel due to unforeseen operational difficulties.
According to the module, which of the following types of damage is covered by Protection and Indemnity insurance? Select ONE correct answer:
Loss of or damage to any other ship and the property on board, that is not covered under the ordinary hull policy.
Damage to the hull caused by ice.
Loss of or damage to another ship and the property on board as a result of war like activity.
Wilful misconduct by the member, resulting in damage to another ship and the property on board.
According to the module, which of the following claims, resulting from an act of piracy, will be met by Protection and Indemnity Association insurance? Select ONE correct answer:
Loss of life and personal injury.
Ransom payments to those, who have kidnapped crew members.
Loss of income, when a ship has been taken over and detained by pirates.
Damage caused by pirates attacking a ship, including damage by fire.
Against what does P&I Insurance cover ship-owners, charterers and ship operators?
Liabilities arising directly out of the operation of a vessel.
Errors made by office staff.
“Acts of God”.
Charterers demurrage.
Based on the module, which of the following is covered by Protection and Indemnity Association insurance? Select ONE correct answer:
The cost of raising, removing or destroying a wreck.
The cost of repairing damage to the hull of a members vessel.
The cost of damage to a members vessel as a result of war like activity.
Loss of income as a result of detention of a members vessel by a port State, due to it being found unseaworthy.
Based on this account of the incident, please review the additional consequences listed below and select those, where the costs would be covered by the P&I insurance:
The families of the three crew members, who were killed in the accident, filed a lawsuit in the United States. The claims were successfully defended, but substantial legal costs were incurred by the owners.
Although general average was declared and legally upheld, cargo underwriters refused to contribute claiming, that the vessel was not seaworthy, resulting in an unrecoverable General Average contribution.
The Japanese courts found, that the ship-owners liable for the cargo shortage.
A substantial fine was imposed on the ship-owner as a result of the oil spill.
Based on this account of the incident, please review the consequences listed below, and select those, where the costs would be covered by the P&I insurance:
Expenses were incurred in evacuating and hospitalizing injured crew members.
Expenses were incurred in having the bodies of the deceased crew members repatriated.
There was a cost for investigation of the cause of the explosion.
The ship owner was contractually bound to pay compensation to the bereaved families of dead crew members.
The ship owner was contractually bound to pay sickness allowance to injured crew members.
How does the International Group of Protection and Indemnity Associations, or Clubs cover major claims, involving catastrophic events? Select ONE correct answer:
By sharing major claims and reinsurance.
By increasing the supplementary contributions.
The International Group has a contingency fund for such claims.
By sharing the risk with Hull and Machinery insurers.
How should a Master react to a shipper offering a Letter of Indemnity in exchange for the Master signing the Bill of Lading as “clean on board”:
The Master should never accept a Letter of Indemnity in exchange for signing a “clean” Bill of Lading.
If the cargo has very limited damage and the shipper would otherwise not be able to collect his Letter of Credit, it is acceptable to sign a clean Bill of Lading, provided a Letter of Indemnity is given in exchange.
If the cargo was actually damaged on board during the loading operation, the Master should accept a Letter of Indemnity.
If the shipper and the receiver is the same person, then it is normal custom to sign a clean Bill of Lading and a Letter of Indemnity is always issued.
Select the factors, that will influence the level of the premium, that a ship owner pays, when entering his ship with a P&I Association. Select all appropriate answers:
Performance standard of the ship’s management.
Operational performance of the ship’s crew.
Type of cargo carried.
Type of contract, under which the crew are engaged.
The value of the vessel.
The area, in which the vessel trades.
What are the two parts of a Protection and Indemnity insurance premium called? Select ONE correct answer:
Advance premium and supplementary contribution.
Advance contribution and statutory premium.
Protection premium and indemnity premium.
Advance premium and claim supplement.
What does P&I insurance cover?
Third Party liabilities.
Loss of the vessel.
Loss of freight revenue.
Damage to the ship’s hull or machinery.
What does a Certificate of Entry establish?
That a specific vessel has been accepted into a P&I Association for purposes of insurance cover.
The terms and conditions of P&I insurance cover applicable to a specific vessel.
The terms and conditions of P&I insurance cover secured by the owners for their complete fleet.
That the vessel named on the certificate has appropriate insurance cover, and can therefore enter into a Contract of Carriage.
What is a supplementary contribution? Select ONE right answer:
A contribution to be paid after the end of the policy year, based on the performance to the whole member’ship of the Protection and Indemnity Association.
A mandatory contribution to be paid after the end of the policy year, applicable to member’s, who have made very large claims.
A contribution to be paid after the end of the policy year, and dependant on the performance of the individual vessel/owner.
A contribution to be paid by members to cover the costs of settling damage claims of a catastrophic nature.
What name is generally given to appointed representatives of Protection and Indemnity Associations in ports around the world? Select ONE correct answer:
Correspondents.
Agents.
Overseas Inspectors.
Defendants.
What name is given to owners of ship’s, registered with a particular Protection and Indemnity Association? Select ONE correct answer:
Members.
Associates.
Trustees.
Underwriters.
When should the Master release the cargo to the consignee(s) without production of the Bills of Lading? Select ONE correct answer:
When explicit instructions have been given to that effect by the ship owner/operator to the Master.
When explicit instructions have been given to that effect by the ship’s Agent to the Master.
When explicit instructions have been given to that effect by the receivers to the Master.
When the shipper and receiver are the same person or company.
Which of the following are claim types covered by Protection and Indemnity Associations? Select ONE correct answer:
Liabilities to third parties.
Hull damage.
Loss of freight income.
Loss of the vessel.
Which of the following are covered by P&I insurance? Select all applicable appropriate answers:
Loss of or damage to any other ship, boat or craft, or to property on board them, so far as such liability is not covered under the ordinary hull policy.
Damage to any other vessel or property, thereon without actual contact, such as from wash damage.
Damage to docks, piers, jetties, buoys, cables or other objects of a like nature, and property thereon.
Loss of or damage to any other ship, boat or craft, or to property on board them, provided such liability is covered under the vessel’s ordinary hull policy.
Which of the following describes how Protection and Indemnity Associations operate? Select ONE correct answer:
They are non-profit organisations, that collect premiums to cover claims and administrative costs.
They are a commercial organisations, that create profit from premiums paid by ship owning members to cover legal liabilities.
They are profit making organisations, that act as brokers, assisting ship-owners with arranging indemnity insurance.
They are non-profit organisations, that cover costs by charging legal fees for advice to ship-owners to help defend third-party liability claims.
Which of the following functions does a Bill of Lading fulfill? Select all appropriate answers:
It provides evidence of ownership to the goods.
It documents the terms of carriage.
It provides evidence of the apparent condition of the goods at the time of shipment.
It is used for customs purposes, when clearing a vessel out of port.
It provides evidence of the condition of the carrying vessel.
Who provides cover for damage to fixed and floating objects, like berths, piers, fenders or buoys? Select ONE correct answer:
Either Hull and Machinery or Protection and Indemnity Association.
Always the Protection and Indemnity Association.
Always the Hull and Machinery Insurer.
It is normal for the risk to be shared equally between Hull and Machinery Insurers, and Protection and Indemnity Association.
Why must the description of goods in the Bill of Lading be correct? Select all appropriate answers:
Because the issuance of a clean Bill of Lading for damaged goods constitutes a fraud.
Because the Bill of Lading becomes conclusive evidence once it has been endorsed to a third party.
Because the shipper would otherwise not be able to collect the letter of credit.
Because the ship will not be able to land the goods if it is inaccurate.
Why was Protection and Indemnity insurance created? Select ONE correct answer:
Due to an increase in third party and contractual liabilities of ship-owners.
Due to an increase in ship and cargo losses due to maritime warfare.
Due to a significant increase in international commercial trade.
The size of the world maritime fleet reached 1 million tons.
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