INSURANCE on a dive boat destroyed today in a 10 million baht blaze on Phuket ran out last week, the managing director of the dive boat company said today.

Pakdee Khruthanang said that marine transport inspectors, whose approval was required to renew the policy, were at the dock when the Ladawan 2 burst into flames. The vessel was destroyed.

"There was an explosion, then the fire immediately broke out," Khun Pakdee said. She said the marine transport inspectors had come straight from looking at the other boat owned by West Coast Divers, Ladawan 3, and were at the dock when the fire began.

''We understand that the inspectors have a lot of boats to check,'' she said. ''We received notification they were coming in the morning.''

The Ladawan 3 was moored at Chalong, on Phuket's west coast, and the Ladawan 2 was moored at Rassada, closer to Phuket City, the deep sea port for many ferries and tour boats.

A young Phuket boatkeeper who was on the Ladawan 2 at the time of the blaze told today of his lucky escape.

Juthawat Hamwong, 23, was on the top deck when the large live-aboard burst into flames with a blast from the engine room.

''I knew there were two guys down below,'' he said. ''One was welding. I knew something was up.

''I got down there as fast as I could. But there was smoke between me and the hatch to the engine room. I jumped onto the dock.

''I let the mooring rope out to get the Ladawan away from the other boats. Then I got on the mobile phone to my boss, the captain.

''People started to arrive to find out what was happening. This morning we took the boat out of the slipway.

''We were checking everything, ready for the start of the high season. From November 1, we start doing runs to the Similans from Tab Lamu [a pier point north of Phuket in Phang Nga] We were going to head to Chalong next week to do some more preparation before heading north.''

Tonight only one of seven men taken to Vachira Hospital in Phuket City was still being treated. Bai, a man who cannot speak, suffered burns to four percent of his body, mostly his face and hands.

He was in a stable condition and responding to treatment. It is believed he was carrying fuel on board the boat at the time of the blast and fire, around 10.15am.

Somjai Karndee, one of the West Coast staff, said she learned about the fire in a telephone call and immediately headed for the pier at Rassada.

''We have only two boats, Ladawan 2 and Ladawan 3,'' she said. ''We will probably have to join with another company to help guests with their bookings for holidays. The boat is eight to nine years old.

'We usually use it for only six months, from November to April, on trips to the Similan islands.''