The Insurance Council of Australia (ICA) says proposed changes to the domestic commercial vessel survey regime may pose public safety risks.

In a submission on an Australian Maritime Safety Authority guidance paper, ICA says the proposal to increase the number of vessels exempt from the survey and reduce the frequency of checks for certain commercial vessels will result in less regulatory scrutiny.

It says the proposals contradict the survey regime’s fundamental objectives and will have serious consequences for the marine insurance sector.

Under the proposed regime, operators would have to spend more resources demonstrating to marine insurers that their vessels meet national standards.

The changes would increase the number of high-insurance-risk commercial vessels and lead to more claims, ICA says.

Costs arising from independent inspections of exempted vessels or less frequently inspected vessels would be passed on to customers. Marine insurers may even be forced to exit segments of the commercial vessel market.

“We are disappointed to see the guidance appears to prioritise government administration cost reduction targets at the expense of maintaining national public safety,” ICA says.