A merican Club Circular No. 16 /1 9 1 JUNE 3, 2019 CIRCULAR NO. 16/19 TO MEMBERS OF THE ASSOCIATION Dear Member: PRE-EMPLOYMENT MEDICAL EXAMINATION (PEME) PROGRAM: SYNOPSIS OF 2017 AND 2018 RESULTS AND ATTENDANT COST SAVINGS As Members will be aware, the American Club commenced its pre-employment medical examination (PEME) program in 2003. Over the intervening years, the program has developed into a key component of the Club’s universe of loss prevention initiatives, and has benefited both the Club and its Members through obviating a significant number of illness and illness-related death claims which might otherwise have been incurred but for the PEME “filter”. The attached document contains a synopsis of the results of the Club’s PEME program during 2017 and 2018. It is also available on the Club’s website at: https://www.american-club.com/files/files/PEME_report_2017-18.pdf As will be seen, it contains detail on the conditions of the seafarer health encountered in various parts of the world and, by analyzing the collective results of the program over the years in question, points to the benefits which have accrued through its implementation. As the synopsis suggests, the program may deflect illness and illness-related death claims having a cumulative value of between $2.5 and $3.5 million per annum. But in addition to this positive result in economic terms, the program has also had the related effect of instilling greater health awareness within the seafaring community with which the Club’s Members are involved. Indeed, while the claims cost savings generated by the program indicated in the attached report are a source of gratification to all who benefit from them, a concomitant benefit has been to ensure that seafarers are aware of their physical condition and take appropriate action to improve the management of their health both prior to, and during, their employment at sea. It is hoped that Members, and the Club’s many other friends across the world, will find this synopsis to be both interesting and useful. Of course, the success of the program is due to the unwavering support it has enjoyed from the Club’s Members since it began. The approved clinics, which implement the program in close cooperation with the Managers, are also to be congratulated for their efforts, as are Members’ manning agents for their commitment, too. Looking ahead, the future success of the PEME program is predicated upon the continuing dedication of all involved in its aims, a dedication which may be relied upon in view of the success it has enjoyed to date, and the benefits of which Members have gained from their participation in it. Yours faithfully, Joseph E.M. Hughes, Chairman & CEO Shipowners Claims Bureau, Inc., Managers for THE AMERICAN CLUB The American Club’s Pre-Employment Medical Examination Program 2017 - 2018 i Foreword While that well-worn aphorism, “prevention is better than cure”, has become something of a cliché in regard to maritime loss prevention initiatives generally, it represents a crystal-clear, demonstrable reality for the American Club’s pre-employment medical examination (PEME) program. As the remainder of this document shows, the implementation of this program has generated consistent – and significant – claims costs savings for the Club and its Members. Indeed, the extrapolation of results over several years – including the two years on which this document provides a particular focus – indicates an annual average cost saving of