Survey Compliance Introduction
The Club may also require a condition survey under other circumstances, such as when the vessel:
- becomes involved in a marine casualty,
- is found significantly deficient and/or detained by port State control,
- files a substantial claim or has a substantial claim filed against it, or
- if the Club receives a negative third party report about the vessel’s condition.
The Club will also require a Continuation P&I Condition Survey prior to the fourth renewal of cover.
When a vessel has undergone a survey in which the vessel has been found deficient, a list of deficiencies will be assembled in a report and submitted to the master. The Club’s Technical Department will also review the report to determine if it will recommend to the Underwriting Department whether a defect warranty is warranted.
If issued, the defect warranty will usually remain in effect for any outstanding deficiencies under which the terms of entry are claused, to exclude any and all claims arising either directly or indirectly from any of the outstanding defects enumerated in the deficiency list.
Defect warranties remain in effect until such time as the vessel passes the survey requirement either by successfully undergoing a complete P&I Condition Survey, or following an incomplete survey or a survey in which outstanding deficiencies are found, is presented for and completes a Follow-up Survey satisfactorily.
The above explanation is not intended to in any way detract from or modify Club Rule 1 section 4 articles 39 through 41, which define the Survey Requirement.
Instructions for Condition Survey Reports
CONDITION SURVEY REQUIREMENT FOR TANKERS CARRYING HEAVY FUEL OIL (HFO) AS CARGO
As part of a concerted industry effort to ensure higher ship standards, the International Group of P&I Clubs is collectively implementing a new survey trigger for seagoing vessels of 10 years of age or more carrying HFO.
As a consequence, all sea-going vessels aged 10 years or more which have carried heavy HFO as cargo within the previous 12 months will subject to condition survey, unless:
• the vessel has undergone a P&I club condition survey during the previous 12 months; or
• the vessel has undergone a Special Survey during the previous 6 months; or
• the vessel has a valid Condition Assessment Program (CAP) rating of 1 or 2 with a classification society having membership in the International Association of Classification Societies (IACS).
HFO is defined as residual fuel with a kinematic viscosity of 380 centistokes when measured at 50 degrees Celsius by the ISO 3104 test method. This excludes vessels carrying intermediate fuel oils or heavy crudes, as well as those carrying bitumen or tar.
Members should note that a declaration is now required by 20 March in each year so that the Club may determine whether HFO has in fact been carried by an insured vessel as cargo during a relevant policy period. This must be done by completing the HFO declaration form on the SURVEY FORMS page for the relevant year and returning the information to the Managers.
If a vessel continues to carry HFO as cargo over a period of successive years, the Club is not obliged to carry out a survey every year. However, a survey will need to be held at least every three years after the first survey has taken place. It is at the Club’s discretion whether or not to undertake surveys on a more frequent basis.