16-01-2017

The Shipowners’ Club: Cost reductions across Members’ operational landscape

Shipowner

During 2016 the Club launched a new subsidiary, CTRL, through which Members of the Shipowners’ Club are able to access significant financial benefits which assist in cost reductions across their operation.

CTRL offers bespoke Claims, Technical, Risk and Legal services to Members of the Shipowners’ Club on flexible terms and at favourable rates. Members of the Club are able to take advantage of CTRL’s services in a number of ways, tapping into free resources, a complimentary health check of operational procedures and free qualifying legal work.

Complimentary health check of operational procedures

Members’ have access to a voucher, giving them a complimentary health check of their operational procedures. It is a challenge for operators to manage the busy and complex operations of a vessel or fleet while also ensuring that procedures and systems are up-to-date with ever-changing legal standards and regulations. As such, CTRL offers the health check as a ‘no strings attached’ assessment that identifies any areas within operations that may need improvement or implementation.

Defending claims at lower than industry rates

Members who are defending claims which are covered by their P&I insurance, or who are involved in disputes where the Club is paying their legal costs under their legal costs cover, can instruct CTRL to advise and deal with the claim as an alternative to other English law firms. CTRL’s rates are around 30% lower than other law firms, making a positive effect on Members’ loss ratios.

Members without legal costs cover or for claims which fall outside P&I cover, such as full contract review work or debt recovery, can access a full claims handling service and legal advice at the lower rates offered through CTRL. Members can be assured that they will receive the same quality of advice and robust dispute resolution service as they can expect from the Club.

In addition, from 20 February 2017, the Club will be introducing the ‘CTRL benefit’ clause to Club cover. The clause enables Members to take advantage of two hours’ free legal work for qualifying English law matters.

Case study: Instructing CTRL at rates 30% lower than industry

CTRL was recently instructed to provide detailed legal advice and recommendations for future strategy to Members who were considering withdrawing their vessel from their charterers following charterers’ refusal to pay hire on the grounds that the vessel lacked the necessary oil major approvals. CTRL provided key advice for £2,600 which was paid for by the Club under the Members’ LCC insurance. The same piece of work from other London solicitors would have cost the Member almost £4,000.

Source: The Shipowners’ Club

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