A new DVD from the UK P&I Club emphasises the importance of reducing risk

P and I Clubs — By on November 13, 2012 at 10:35 AM

Karl Lumbers

The UK P&I Club is absolutely committed to maintaining a vibrant loss prevention programme and its latest move is a new DVD that places a specific focus on the Bow Tie concept – a comprehensive risk assessment initiative which helps members identify and prioritise risk across their whole fleets.

 According to the Club’s Loss Prevention Director, Karl Lumbers, the DVD, titled ‘No room for risk’, will be a very effective form of communication when conveying the Club’s risk prevention messages to ships’ crews and managers, opening up our risk management process to everyone:

“With its graphic images, including footage filmed at the London Zoo, it makes for compelling viewing whilst delivering information regarding the key elements of our Bow Tie concept. By employing Chris Rogers, a well-known TV presenter and journalist who currently works for the BBC, it gets away from the classroom-style lecturing by adopting a style more consistent with a TV documentary.”

The fifteen-minute DVD features various shipboard and office locations and illustrates the Club’s innovative approach to risk management, the Bow Tie analysis of hazards and their potential consequences if uncontrolled.

Scenes filmed on board ship highlight the role of the Club’s risk assessors.  Working in co-operation with the officers and crew they identify risk areas and corresponding controls and precautions, often cheaply and simply put in place.

The process is a two way street. The assessor is able to share with shipboard and shoreside staff other Members’ experience as well as the past claims experiences of the Club. Officers and crew are encouraged to contribute ideas on both hazards and the corresponding controls.

Mr Lumbers insists: “It is essential that seafarers participate in this programme so that their practical experience and input can be heard and acted upon.

“No matter how inexperienced he or she may be, every member of the crew has a role to play. Simply walking around a ship with open eyes, a crew member will see hazards, some serious, some minor. All need reporting to the relevant officer for action. A frayed rope on the gangway, a broken safety guard on a piece of machinery, oil leaks and spillages, a corroded mounting on a crane or davit, missing pieces of safety equipment, damage to hatchcover seals, the list is endless. “

The analysis takes into consideration the risk that conventional or established precautions and controls associated with maritime operations can fail. It may be as a result of blatant failures to follow procedures or it can be the occurrence of an accident that had just been waiting to happen. Usually though, it is just an unfortunate incident that might have been foreseen but wasn’t.

Many of the claims that inform this work arose from such failures.  The Club’s methodology draws on the analysis of 100, 000 claims over the last 23 years. It has identified seven primary risk hazards; 76 common threats, which if not contained could cause an incident; and 450 controls that need to be in place and effective if the threats are to be contained.

The DVD illustrates the basic principles with both the simple “Tiger in the Cage” example filmed in London Zoo as well a maritime example – wet damage to cargo.

A consistent and inclusive approach to risk encourages sustained and measured loss prevention activity over the longer term.  Sharing information across the fleet and operational departments enhances credibility, co-operation and effectiveness, says Mr Lumbers:

“The UK Club risk management project offers strategic guidance to owners and operators on tackling the root cause of expensive claims.  Using quantified real-life case examples owners/operators are able to invest proportionately in risk management and loss prevention activity.

“It also provides evidence that may be needed when explaining to charterers, investigative authorities and even courts exactly at happened. Having sound evidence prior to any investigation is a plus-point from the outset.”

Copies of the DVD are being sent to all Club Members.  In addition, it can be viewed on the loss prevention section of the UK Club website – http://www.ukpandi.com/loss-prevention – where further materials explaining the methodology can be downloaded.

UK P&I Club

The United Kingdom Mutual Steam Ship Assurance Association (Bermuda) Limited is generally known as the UK P&I Club. As a mutual association, the UK Club has no outside shareholders and no financial links with other organisations. Since its establishment in 1869, the Club has existed solely for the benefit of its members. Its structure as a mutual insurance association enables it to respond to the changing needs of its assureds and allows it to provide superior service, attention and coverage.

The UK P&I Club is directed by the members. Overall control lies with the directors, elected by the members from amongst themselves. The directors normally meet four times a year to formulate policy on calls, the scope of cover, finance, underwriting and claims matters, reinsurance and issues affecting the P&I world. They resolve specific claims which may not fall clearly within the cover.

Thomas Miller, the Club’s managers, is organised to respond promptly to requests for assistance and to provide informed advice and help with members’ claims. Individual support goes far beyond that normally provided by a commercial insurer.

The UK Club’s size and the scale of the managers’ operations has enabled the latter to develop specialist skills and expertise seldom seen in marine P&I.

In 350 ports around the world, on-the-spot help and local expertise is always available to members and the masters of their ships from the Club’s 460 correspondents and claims handling services and advice from the network of offices and branches in London, Piraeus, New Jersey, San Francisco, Hong Kong, Singapore, Tokyo, Beijing and Shanghai.

Thomas Miller
The Thomas Miller Group manages a number of world-leading mutual insurance organisations or “clubs, ” providing insurance for shipping, transport and professional indemnity risks; and captive insurance companies in the Isle of Man and Bermuda. Thomas Miller provides risk management consultancy services and, through its regulated specialist subsidiaries, delivers a full investment management service to mutual clubs, captives and other clients. The firm incorporated in 1999 and is owned and controlled by its 550 employees worldwide.

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