P&I Condition Surveys are distinctive in that, unlike all other surveys, their primary and pro-active purpose is to identify P&I risks that may expose liabilities and lead to costly delays and unnecessary disputes with commercial partners. As such, a condition survey is a proven risk management process which can provide tangible returns that far exceed the relatively low cost of the P&I Survey fees and the effort expended.
The objectives of a P&I Survey are to:
- Identify vessel structure, equipment and operational deficiencies and/or ISM Code non-conformities that constitute significant P&I risk and;
- Provide recommendations to accomplish practical and prompt deficiency rectification to minimise all identified P&I risks to industry recognised 'as low as reasonably practicable' (ALARP) standards.
In general, risk management in all shipowners is comprised of two fundamental elements:
1st : The identification, assessment and minimisation all of the risks which the shipowner has the capability to control and reduce to the ALARP level.
2nd: The comprehensive insurance the shipowner requires to cover the risks that are beyond their reasonable control.
Effective and optimal risk management can only occur when both elements are working together to common purpose. This can often go wrong if the 1st element is not completed properly and/or is not maintained. P&I Condition Surveys and FRAs constitute the 1st element of the risk management and control process. If these surveys are accomplished properly and effectively, then boat owners will be on track to ensuring the full benefit of the 2nd element of risk management; their P&I insurance coverage.