NECESSITY OF CONDITION SURVEYS

A condition survey is carried out to reflect the actual condition of the vessel at the time of inspection.

The purpose of the survey is to ascertain a vessel's condition since it is important that no damages and/or incidents will result from defects on the vessel. This of course is our concern but must be the concern of the Assured as well. We from our side aim for a healthy fleet under our insurance without claims resulting out of lack of maintenance, which will help us maintaining attractive terms and conditions.
 

The direct benefit for the Assured is that by rectifying the survey findings and possible weak spots in the on-board operation, established by an independent expert, the condition of the vessel(s) will improve, thus making the vessels more attractive for charterers.
 

Whether a survey is necessary, is based on several criteria set out by the underwriting department.

• for new entries: vessels in excess of 10 years upon inception
• for existing entries: vessels 10-20 years once every 2 to 3 years, depending on the condition of the vessel and performance of the individual client, type of vessel, trading area, vessels operation / cargo carried and assumed quality of the Owners/Managers
• for existing entries vessels in excess of 20 years annually

vessels regardless of age are subject to a survey pending risk assessment on a case to case basis.

SURVEY PROCEDURE 

In order to maintain unity throughout the many surveys performed each year, all surveys must be carried out by approved surveyors in accordance with our survey guidelines. A copy of these guidelines can be obtained from our office in Rotterdam or can be downloaded from our website by clicking on the following link.
 

Since the most important cause of errors is miscommunication we attribute high value to exchange of information.
One can display the whole process of survey as follows:

• RaetsMarine makes the request for survey to Brokers and Owners
• RaetsMarine provides survey instructions to the surveyors. We request special attention for areas on board that are known to be contributory factors to major claims: seaworthiness, cargo worthiness (hose test / ultrasonic test carried out on hatches), pollution prevention and procedures followed (including ISM)
• Surveyors and Owners make agreement on fee prior commencement of survey
• The surveyor informs RaetsMarine and Owners about survey findings (reporting)
• RaetsMarine informs position to Owners in the form of the Risk Assessment and describes which information needs to be provided to have the record cleared.
• Owners provide required information (verification of rectification) directly to RaetsMarine. Alternatively this information may be sent via the surveyor in which case the approval of the surveyor can be sufficient.

In the Risk Assessment it is described how this verification of rectification needs to be submitted:

• follow-up survey. It is important that the attending surveyor is provided with the latest status (Risk Assessment).
• photographic evidence
• copies of documents / records
• written confirmation from Owners / Master

The exchange of information is of utmost importance. When we ask Owners to provide us with information such as photographs it must be clear to us what exactly is the defect we are talking about. Therefore, we ask surveyors during their attendance to make an enhanced description of the deficiencies including (close-up) photographs. When we have a picture of the deficiency it is easier for us to compare this with evidence brought forward by the Assured upon rectification.

CONCLUSION ON CONDITION SURVEYS
 

Despite the advantage Ship owners can have by a regular survey, the reality is unfortunately that the whole process encounters sometimes resistance with Ship owners. They might argue that the survey is too extensive and too expensive, while at the same time the whole process following the survey is deemed complex and too strict or time consuming.
 

It must however be noted that the system we follow is twofold;
 

Besides the fact that we need the surveys as an important tool to establish the overall general condition of the vessel, the outcome of the inspections does serve to assist the owners too. They provide the perfect tool for the owner to ensure their operation remains safe, effective and prosperous. A continues improvement of its operation will lead to less incidents, accidents and damages as well as improved insurance performance statistics and positive Port State Control verification targeting for each participating owners benefit.
 

Improved performance will work to ensure both we as insurer and the ship owners as our clients maintain a mutually healthy fleet under our insurance, which fleet will be able to prevent and successfully resist claims.
 

Although we have a system of fixed premiums which means that, unlike with a mutual insurance, one client’s loss does not necessarily mean disadvantage for the next client, it cannot be denied that everybody will profit from a situation that we are able to maintain a positive balance.
 

In this respect we ask our clients to support our view and cooperate in having the condition surveys performed as per our requirements. It adds to a safer ship, which is in everybody’s interest.