Maritime Labour Convention

by Hans | July 12th, 2013

Has your insurance broker discussed the implications of Maritime Labour Convention with you?

On the 20th August 2013, the Maritime Labour Convention (MLC) comes in to force for the ratifying counties around the world. The convention will impose certain responsibilities on Owners and employers of seafarers including the need for a Financial Guarantee for repatriation of the crew.

As at 12 June, the following states have ratified the convention:-

  • Antigue & Barbuda
  • Bahamas
  • Cyprus
  • Denmark
  • Greece
  • Kiribati
  • Liberia
  • Malta
  • Marshall Islands
  • Norway
  • Singapore
  • Spain
  • Sweden
  • Switzerland
  • St. Kitts & Nevis
  • St. Vincent & Grenadines
  • Tuvalu
  • UK

Under MLC, there are provisions for conditions of employment to ensure that Shipowners and employers of seafarers carry the burden of repatriation costs.

Under the regulations:-

  • Seafarers have a right to be repatriated at no cost to themselves in the circumstances and under the conditions specified in the Code.
  • Each Member shall require ships that fly its flag to provide financial security to ensure that seafarers are duly repatriated in accordance with the Code.

Repatriation resulting from Illness, Injury, Death or Shipwreck would usually be covered under a Ship-Owner’s P&I policy, however repatriation under any other circumstances would not be covered.

The P&I market is responding to the needs of Ship-Owners under MLC, and are agreeing in the most part to cover repatriation for any reason, but only as far as a Certificate of Entry is enough to provove cover to Flag State. This does not constitute a form of financial security. There would also be no cover for P&I entries which exclude Crew Liabiblity.

Potentially, there is a conflict of interest in providing this cover via the P&I market.

At Henderson, our marine practice can assist you in obtaining coverage for your liabilities under MLC, outside of the P&I market, which will include:-

  • A fully compliant MLC Certificate of Insurance in the form of a financial guarantee
  • Coverage for Unpaid Wages (which is not required by MLC).
  • Medical Expenses
  • Personal Accident cover
  • The cost of Subsistence and Repatriation
  • The costs of Evacuation

The inlusion of Unpaid Wages removes the need for Crew to stay aboard an abandoned Vessel.

MLC is applicable to all Vessels performing International Voyages, including those working outside of State territorial waters, as well as Vessels over 500 GT.

Contact us to find out more. Our Marine products are available from our Marine Practice from all Henderson offices, located around the UK in Newcastle, Stockton-on-Tees, Manchester, Leeds, Hull, Kirmington and Peterborough.

For more information contact marine@hibl.co.uk or call 01642 659300

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