In 2006 the International Labour Organisation (ILO) worked on a legal framework of rights to secure uniform working and living conditions for seaferers and ensure equal conditions of competition for shipowners. The outcome was the Maritime Labour Convention (MLC) which entered into force on 20 August 2013. A few months later, in April 2014, the ILO however agreed several amendments (of financial nature) that will enter into force on 18th of January 2017.
What does this mean?
After this date, ships that are registered in a flag State that ratified MLC or ships that trade with States where MLC is in force will require carrying MLC certificates issued by an insurer or another financial institution confirming that insurance, or another form of financial security, is in place for liabilities in respect of:
- Repatriation of seafarers and outstanding wages in accordance with MLC Regulation 2-5;
- Compensation for death or long-term disability in accordance with MLC Regulation 4-2.
In order to allow our assureds to meet the new MLC requirements kindly be advised that RaetsMarine will issue the necessary documentation throughout the month of December to those Clients who have taken out crew liability. RaetsMarine will honor claims submitted by seafarers in accordance with MLC, but it is important to note that we will maintain our subrogation rights for seeking reimbursement from the shipowners should a claim fall outside the scope of the P&I cover as per the relevant policy wording.
In case of any queries on cover kindly direct these to us at SupportDesk@RaetsMarine.com