UK P&I Club Helps Members ID, Manage Risk

 

The scheme is designed to help the Club’s shipowner Members take a more hands-on role in identifying and controlling the risk of accidents on their vessels – which in turn could help to reduce their insurance premiums. 

 

The trial is the latest development in the Club’s new claims-based approach to ship inspections. Launched 4 years ago, the new approach focuses specifically on measures needed to control the most likely accidents on a ship as determined by the Club’s unrivalled database of 12,000 major claims. 

 

Using ‘bowtie’ risk diagrams, the database reveals seven primary hazards and 76 common threats which, if not controlled in one or more of 450 ways, could result in a major claim. For instance, a primary hazard for cargo ships is carrying cargo at sea. Water ingress is a threat and, if not controlled by measures such as watertight hatch covers, the shipowner will be sued for wet damage. 

 

According to Loss Prevention Director Karl Lumbers: “Our bowtie approach has proved very popular with Members, with our inspectors being able to help them identify and control threats much more effectively. We have now modified the approach so that Members can start using it and benefiting from it directly”.

 

Initially the Club will provide self-assessment facilities for up to 20 Members, whose crews will score the effectiveness of 450 shipboard controls from 1 to 5.

Each Member’s scores will be analysed by the Club, with the effectiveness of each control being benchmarked. A formal risk assessment report will be provided to the Member showing the overall risk percentage. Claims prevention advice will be made available to discuss any particular findings in the assessment.