Report on P&I Condition Surveys 2019 This is a report on the condition surveys conducted in 2019 policy year (hereinafter referred to as “PY”).   Objective In order to maintain the standards of the entered vessels, we conduct condition surveys by independent surveyors for both post and pre-entry vessels that have reached a certain age. Due to the mutuality principle of P&I insurance, whereby the premiums entrusted to us by Members shall be used to compensate for loss or damage in the event of an accident, it is necessary to ensure that each Member has and is maintaining a certain standard of ships quality and management.o assess the vessel's potential risks, which could lead to P&I claims, the condition surveys questionnaire includes not only the physical condition of the vessel but also the standard of operating manuals and the ship safety management system.     118 vessels surveyed in 2019PY In 2019PY, we conducted condition surveys on a total of 118 vessels. For 2020PY, we aim to carry out condition surveys for all nominated vessels. In each case our Members’ kind understanding and cooperation is, of course, highly appreciated.     Serious Deficiency Whenever there is a defect pointed out, we ask for immediate and permanent repair to be conducted in order to prevent accidents. Furthermore, we may issue a “Defects Warranty” which warns that there is a possibility of "coverage restriction". The “Defects Warranty” will be issued for deficiencies that are likely to lead to a serious accident. Some of the defects warranties issued are as follows.   General cargo, dry-bulk or wood-chip carrier vessels Failing the ultrasonic test for cargo hatch covers (See our Circular No.16-011 dated on 13 July 2016) Hatch cover cleats heavily corroded or stuck   Other vessels (common defects) Oil leakage from several machine units in engine rooms Signs of smoke leaking from the exhaust manifolds of an auxiliary engine. A mooring rope (he