Navigation incidents most costly, insurer claims

The mutual society’s examination of claims between 2004 and 2013 reveals that the rate of navigation incidents – including collisions, contacts and groundings – has remained steady despite improved technology and the implementation of safety management systems.

Navigation incidents accounted for 52% of all hull and machinery claim costs and 36% of all claims. Machinery and equipment issues by contrast represented only 31% of claim costs, but half of all claims.

The report attributed the majority of navigational incidents to procedures not being properly followed, crew failing to communicate properly with their team or with other vessels, and a lack of situational awareness.

Lars Malm, director of strategic business development and client relationship, The Swedish Club said: “This report shows that most claims can be prevented by simply ensuring that all crew follow proper procedures and consult with each other before making major decisions.”

The company also noted that the im¬plementation of an effective training programme for officers is crucial to effec¬tive communication and risk assessment. Appropriate measures must be taken to address heightened risk when sailing in congested waters, dense traffic or close to land.

The report also highlights the loss of engine power as a big source of navigational claims. The Swedish Club said the finding emphasised the need to follow manufacturer’s instructions, use original spare parts, complete required maintenance and check that steering is fully operational before entering or leaving port.

The Swedish Club’s Navigation Claims report can be

downloaded here