Marine Surveyor’s Role in Risk Assessment & Management Review
1. Uday Moorthi
Managing Director
Quest Marine LLC
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Marine Surveyor’s Role in Risk Assessment
&
Management Review
QUEST MARINE (L.L.C.)
Event :
Venue :
Date :
2. Marine Surveyor’s Role in Risk Assessment
and Management Review
1.0 Introduction
We represent an industry which is prone to risks of very
high magnitude.
Role of a Marine Surveyor is to sell experience,
knowledge and above all …… the ability to think laterally.
It is mandatory for all concerned parties to exercise due
diligence in avoiding risks and mobilize a contingency plan to
mitigate the losses.
A Marine Surveyor can play a vital role in assisting ….
not only the Underwriters, but also the Assured.
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3. Marine Surveyor’s Role in Risk Assessment
and Management Review
2.0 Purpose of the Review
To evaluate and assist in identifying areas which can reduce
losses and mitigate expenses, BOTH -
Onboard
Office Management System.
This will ensure the overall benefit of the Company and their
Insurers.
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4. Marine Surveyor’s Role in Risk Assessment
and Management Review
3.0 Cost of Review
The financial cost of the review should not be compromised
under any circumstances . This is essential so as to ensure :
That the preparations for the review and the
follow up to its findings are addressed with due
diligence and accorded full attention.
It is commonly known that all Companies (no matter how
big) will strive harder in their preparations, if the financial
implication of a “Re – Inspection” is higher.
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5. 4.0 Agenda
Collate info.
Identify hazards.
Analyze effects of Hazards on Whom / How / When etc
Review previous assessment reports (if any).
Conduct a De-brief session
Marine Surveyor’s Role in Risk Assessment
and Management Review
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6. Marine Surveyor’s Role in Risk Assessment
and Management Review
5.0 Composition of the Review Team & Reporting
An ideal review team should comprise the following:
a. Chief Engineer.
b. Master Mariner (perhaps a Tankerman), depending on the
nature of operations of the fleet.
c. ISM / ISO Auditor.
d. A Marine surveyor.
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7. Marine Surveyor’s Role in Risk Assessment
and Management Review
6.0 Role of the Surveyor, whilst on the Review
Act as Independent Surveyors / Consultants.
Represent Liability Insurers / Underwriters/Assured or
other interested parties.
Embark on a “fact finding” and NOT “fault finding”
mission.
Dwell on common points of interest to identify Risk Prone
areas and advise remedial measures & suggestions.
Effective information gathering without interrupting
operational commitments of the Management / Office staff
/ Ship Staff.
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8. Marine Surveyor’s Role in Risk Assessment
and Management Review
7.0 Physical Scope of the Review
Verification of ISM status.
Review of the size and value of the Fleet.
History of the Company, their Owners and Managers.
Claims History.
Crew Recruitment Policy.
Budgeting allocation for Fleet maintenance.
Company Policy for Safety and Training.
Organogram and Insurance Underwriting Structure.
Company Procedures for monitoring Fleet.
Customer Feedback and Satisfaction reports.
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9. Marine Surveyor’s Role in Risk Assessment
and Management Review
Overall morale of the staff (both onboard and in the office).
Interact with concerned depts.
Obtain an insight into OPS dept / identify weak spots .
Obtain an insight into Tech dept / identify weak spots.
Visit representative vessels / Identify weak spots and verify
whether onboard management confirms to standard operational
procedures.
Review ISM / Insurance / Procurement / Manning
procedures.
Discuss (past) Claim related matters and the corrective actions
implemented.
Role of the Surveyor, whilst on the Review…contd../-
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10. Marine Surveyor’s Role in Risk Assessment
and Management Review
8.0 Case Study
In the recent case of a major fleet (which forms part of a
conglomerate), the Underwriters realized that the previous years
had witnessed a spate of H&M claims on this fleet that operated
offshore supply and support boats, in various ports, around the
world.
Therefore a mutually (Owner / Underwriter) agreed Management
Assessment and Risk Review was called upon. After a prolonged
deliberation, it was agreed that the Assured would pay for the review
(it took over a month for the payment agreement to come
through ….).
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11. Marine Surveyor’s Role in Risk Assessment
and Management Review
8.0 Case Study – Contd…/-
The sequence of events involved:
a. Initial Introductory meeting :
Introduction and Explaining the Scope of audit.
Highlighting the modus operandi as per below:
Decide the number of representative Ships that need
to be inspected, their dates and location.
Manning Status of the Company.
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12. Marine Surveyor’s Role in Risk Assessment
and Management Review
8.0 Case Study – Contd…/-
Obtain copy of relevant approvals and Management
certification like … DOC , ISO
Operations Department : P&I status / H&M status /
Class survey status
ORGANOGRAM (Office & Fleet Management.
Insurance Department.
Procurement & Finance Dept :
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13. Marine Surveyor’s Role in Risk Assessment
and Management Review
8.0 Case Study – Contd…/-
b. Ship Visits : Who, When and Periodicity. Procedures for Daily &
Noon Reports Quality of Ships crew and their certifications.
c. Second Meeting with Assured : Tech Dept / Ops dept / GM /
MD, as may be possible.
d. De-Brief of our findings to our Principals and issuance of our
recommendations.
A factual analysis of the findings revealed (17)
anomalies.
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14. Marine Surveyor’s Role in Risk Assessment
and Management Review
e. Feedback : Few weeks later, we received a detailed report
stating that all anomalies had been suitably rectified and
evidences were submitted to authenticate same.
f. Payment : Few months later, we eventually got paid.
g. Positives : Many months later, we were advised by the
Underwriters that the Assured had not reported any loss and our
Management Review had been considered to be a successful
venture.
h. Repeat : Subsequently, the Underwriters appointed the surveying
Company to conduct a similar review on another ailing Fleet.
i. Catch 22 : The surveying Company demanded advance
payment…and the risk assessment never happened.
8.0 Case Study – Contd…/-
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15. Marine Surveyor’s Role in Risk Assessment
and Management Review
9.0 Summary
Ladies and Gentlemen, it is important for all of us to understand that
the guiding principle of our business is NOT just to maximise our
profits, BUT ALSO to mitigate the losses.
A surveyor can play a pivotal role in the entire process of Risk
Management, however all that he needs to ensure is that HE
ABIDES BY INDUSTRY STANDARDS & RULES OF
PROFESSIONALISM.
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16. Marine Surveyor’s Role in Risk Assessment
and Management Review
Thank You For Your Time And Attention.
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