PEME Cost Benefit Analysis

The Club takes a close interest in the value of the PEME in terms of the cost of crew illness claims saved. Between 1999 and 2005 the average cost of Members' crew illness claims was US$7,000 per claim.

The total savings can be calculated by applying that average cost to the number of seafarers prevented from joining Members’ ships whilst medically unfit.

Since its inception, PEME has identified 4,523 crew who were medically unfit. Applying the average cost of a crew illness claim to this figure generates a total potential saving for participating Members of $US 23.1 million.

Whilst it is difficult to be specific about the monetary benefits derived from the programme, the club managers have no doubt they are considerable. The average cost of an examination is $US 82.00 depending on the country. Examinations have cost just over $US 8.4 million. The costs of the medicals are not paid directly, by the Member, but instead allocated to his claims record. The cost benefit argument for PEME is compelling.

Average individual illness claim	= US$7,000
4,523* unfit crew @ $7,000	= US$31.6 million
Average individual medical	= US$82
103,408 medicals @ $82	= US$8.4 million

*4.37% of the 103,408 PEME medicals rejected the seafarer as medically unfit, equivalent to 4,523 unfit crew members.

Realising the benefits

The UK Club delivers a service of proven added value to the Club's existing membership through its PEME programme. It has become a key element in the Club's loss prevention scheme.

Ship operators are invited to contact the PEME team to discuss their particular requirements and for information on how to join the scheme.

As the programme develops and expands, the concerns and needs of existing and new members continues to be of the utmost of importance. Sophia Grant, Programme Director says - "We constantly audit the performance of our clinics whilst actively seeking new shipowner Members to our programme. It is essential to establish and improve relationships with Members and clinics. We have to know what the former want and what the latter can do."

• Significant savings in illness costs and repatriation
• Healthier crew and safer ships
• All administration duties taken care of by Club
• Efficient medical examinations
• Industry leading quality control and biennial audit of clinics
• Clinic network developed in direct response to Member needs
• Close cooperation between Members and PEME management team
• 9 years experience
• Reduction in claims above and below deductible.