Ship risk reviews (SRR) are used to determine the condition of the ships within a member’s fleet and the risks associated with insuring them. The LP department aims to survey 10% of the club’s tonnage on a yearly basis and uses the following criteria to select ships for survey:
- all newly entered ships over 12 years old;
- entered tankers which carry persistent oil and are over 10 years old;
- on a routine basis for entered ships, depending on fleet size, age, type and the member’s record;
- as a result of a port state control detention;
- as a result of a claims trend within a fleet or onboard a particular ship giving cause for concern.
The majority of the surveys are conducted by external surveyors, but The Standard Club is unique within the P&I industry and carries out approximately 15-20% of the surveys using in-house staff surveyors. External surveyors are selected from an approved list and effort is taken to ensure that the surveyor with the right skill set is chosen for the task.
Regardless of who conducts the survey, it will be carried out using the club’s SRR checklist which specifies the areas to be included in the review and a means to rate the risks associated with them as low, medium or high. The SRR checklist is reviewed on a yearly basis to ensure it remains up to date with all the new regulations.
Following the survey, the information is reviewed by an internal surveyor who analyses the report and liaises with the underwriters to formulate a course of action. A standardized deficiency list is used, setting out recommended courses of action for specific deficiencies. This is done to ensure consistency in the club’s review letters towards all members.
The result of a survey may be a pass or a fail, in the event of an outright fail the cover for the vessel will be cancelled. Whilst a vessel may pass a survey, there are different grades of pass, some of which require follow up action. The different types of pass include:
- straight pass, with no further action required;
- pass with recommendations;
- pass requiring repairs as a condition of continued cover. In such cases there will be a time limit within which the repairs must be effected. To ensure that these repairs have been carried out to the satisfaction of the LP department a follow-up survey will be conducted.