RA 29 - November 2011 - One of a series of Steamship Mutual Loss Prevention Bulletins produced by the Ship Safety Trust Page 1 of 2 For further information please contact the Loss Prevention Department, Steamship Insurance Management Services Ltd., Tel: +44 20 7247 5490; Email: loss.prevention@simsl.com Web: www.simsl.com/loss-prevention-and-safety-training.html The Risks of Inadequate Crew Pre The Risks of Inadequate Crew PreThe Risks of Inadequate Crew Pre The Risks of Inadequate Crew Pre--Employment Medical Employment Medical Employment Medical Employment Medical Examinations (PEME Examinations (PEMEExaminations (PEME Examinations (PEME) )) ) Background BackgroundBackground Background Crew claims consistently represent a significant proportion of all routine claims that are reported to the Club, i.e. those below US$250,000. In the last five years the average proportion was approximately 41%, and in the last three years, that proportion has shown an upward trend as can be seen from the figures below. 2006 34% 2007 41% 2008 38% 2009 43% 2010 48% The majority of crew claims arise from illness. Quite frequently seafarers are diagnosed with serious medical conditions within a short period of time after first joining a vessel notwithstanding the fact that a PreEmployment Medical Examination (PEME) may have been undertaken. Often, the nature of the illness and the underlying lack of fitness for seagoing employment that this represents brings into question the adequacy of the PEME that resulted in the seafarer being engaged. In the last three years, routine crew claims have amounted to an average of approximately US$19 million. From a loss prevention perspective, it is therefore clear that there is the potential for substantial savings to be made if the exposure to unnecessary crew illness claims can be reduced. The Club’s PEME Scheme The Club’s PEME SchemeThe Club’s PEME Scheme The Club’s PEME Scheme According to the Philippine Overseas Employment Administration (POEA), the Philippines supply more than 25% of crew employed aboard internationally trading vessels. Further, it is known that Philippine seafarers have a pre-disposition to certain medical conditions, associated with diet and lifestyle, that have the potential to generate costly P&I claims. In recognition of this the Club’s PEME Scheme was established in the Philippines in 2009. Arrangements were made for a small number of recommended clinics in Manila, Cebu, Davao and Iloilo to undertake enhanced PEMEs on behalf of Club Members. These clinics are recommended on the basis of advice received from the Managers’ medical consultants, who also undertake annual audits to ensure that performance standards are maintained. The objective of the Club’s Scheme is to ensure that Members employing seafarers from the Philippines have access to a means of ensuring that recruits are engaged only after having undergone a comprehensive age-related examination at a medical facility that can be relied upon for its competence and integrity. Following the successful launch of the pilot programme in the Philippines, the scheme was expanded in 2010 to Russia and Ukraine on a similar basis, since both countries are suppliers of significant numbers of seafarers. The Risks The Risks The Risks The Risks of Economy of Economyof Economy of Economy Naturally the cost of a more rigorous examination is higher than that for a basic PEME, which is often all that has been undertaken in those instances where an avoida