Reduce severity of US personal injury claims by being methodical.

(From Lloyds List)

Byline: When accidents happen, the way they are handled can make all the difference, writes Brian Glover

STANDARD P'I Club recently discussed the rising cost of personal injury at a seminar for American members. Contrary to the commonly-held belief, there are measures that shipowners can take to keep these claims under control.

The United States may be a great place to do business, but even the most ardent admirer would admit that the legal system causes headaches. Shipowners have been on the receiving end of their fair share of grief recently, not least because of the spiralling cost of personal injury claims.

This is a global trend, but the level of awards has been rising faster in percentage terms in America than in most other countries and from a much higher base. As a result, whereas cargo-related incidents are the main source of claims elsewhere, in the US personal injury takes the biggest chunk

Every legislature has to balance the rights of people injured at work with the need for firms to control costs and to pay only for genuine need. It would arguably be in the interests of American industry as a whole, and the shipowners in particular, to adjust the legal system to make it less prohibitive for employers. The reality, though, is that for every dollar that goes into lobbying for tort reform, $100 is spent arguing in favour of the status quo. The current system is here to stay, no matter who is in the White House.

Equally entrenched is the requirement to allow unions to act as the conduit for employing seamen. Although the unions may take their responsibilities seriously, this practice makes it more difficult for shipowners to carry out their own pre-employment medical checks especially important as the average crew age is now in the late 50s. Pre-employment medical screening still has a role, but only in a very limited number of cases. The rapid turnover of staff, meanwhile, hinders efforts to instill the safety culture and sense of teamwork that can help prevent accidents from occurring.