Can increased health requirements for seafarers decrease exposure to illness claims? - A cost benefit analysis of The Swedish Club’s pre-engagement medical examination service.
Examensarbete för kandidatexamen
Sjöfart och logistik (180 hp)
The P&I Clubs have seen a significant increase in the cost of illness claims related to cases where seafarers have been contracted and deployed with undiscovered pre-existing medical conditions. As a preventive measure to this issue, The Swedish Club (TSC) offer the service to perform enhanced pre-engagement medical examinations (PEME) at any of the TSC accredited clinics in Manila to members before employing Philippine crew members. This thesis investigates how the implementation of a PEME program affects The Swedish Club’s and the member’s exposure to costs related to illness claims by analysing statistics from performed TSC PEMEs and historical illness claims. In addition, members of The Swedish Club have been interviewed to create an understanding on how the club’s members value this service. The results show that the TSC PEME service offers a significant exposure reduction to The Swedish Club and the members who choose to use the service. Based on the cost benefit analysis, The Swedish Club and the participating members have reduced their exposure to illness claims, after additional expenses, by up to approximately USD 1.200.000. Moreover, the interviews showed that all parties have a positive attitude towards the purpose of implementing an enhanced PEME. However, there are differences in the opinions and in the experiences from TSC PEME or other enhanced PEMEs amongst the interviewed members.
Transport , Transportteknik och logistik , Transport , Transport Systems and Logistics