Seacurus: Seafarers Should be Protected Against Risk of Unpaid Wages

Posted by Michelle Howard
Tuesday, December 17, 2013

Specialist marine insurance intermediary Seacurus says that reported doubts about the insurance industry’s ability to insure the liability for unpaid wages of abandoned seafarers under the Maritime Labor Convention 2006 are inaccurate and ill-founded.

It is already an agreed principle under MLC 2006, which came into force in August 2013, that liability for the unpaid wages of seafarers currently falls to the recruitment and placement services which help seafarers find employment at sea. Some have rightly argued that this is a misdirected arrow and that it is the shipowner/employer, and not the agent, that should assume this liability.

In a positive move, it is now understood that tripartite talks between owners, unions and governments scheduled for April 2014 at the ILO headquarters in Geneva will finally address this issue, with talks set to concentrate on the specific inclusion of unpaid crew wages in the shipowner’s MLC obligation to repatriate crew in cases of abandonment.

Thomas Brown, managing director of Seacurus, said, “It is time for clarity and certainty on this important issue. The fact is that any cover that does not provide for the indemnification of unpaid wages fails to adequately protect seafarers against the real risk of abandonment. Effective employment protection must include crew wages, without which seafarers risk becoming the cashflow casualties of their employers’ insolvencies.

“It has been suggested by some industry commentators that insurance to cover unpaid wages would be unfeasibly expensive for owners, and that in any case it is only those owners who are likely to default who will need the cover. This is wrong on both counts. Firstly, the CrewSEACURE policy launched earlier this year by Seacurus provides comprehensive cover at low cost, with premiums of as little as $50 per seafarer per year available today. Secondly, the point about only bad owners requiring cover in respect of unpaid wages is immaterial, since the proposed requirement for cover will be mandatory on all shipowners. Mandating the requirement in this way will force out of business those owners who - it is claimed - ‘need the cover’, as they will be unable to obtain the requisite financial security called for by MLC.

“If you cannot pay your crew, you should not put your ship to sea, it’s that simple. Any arguments to the contrary would serve to do our industry a disservice. Unfortunately, without the proposed amendments, there is currently no meaningful deterrent to this premise.

“The fact is that affordable cover in respect of the indemnification of unpaid wages is available, and it is available now. It is in the best interests of the industry and seafarers alike that responsible owners support the ratification and early adoption of the draft amendments to MLC in this regard.”

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter July 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

US Navy Tests Latest Aegis Weapon System

The U.S. Navy conducted a series of cooperative air defense test exercises with the Spanish navy that culminated in live missile firing events using the latest Aegis Weapon System baseline July 20-21.

Antwerp Port CEO Scoops Baron Title

After 25 years as CEO of Antwerp Port Authority, Eddy Bruyninckx has been raised to the nobility by H.M. the king of Belgium with the rank of baron. In Belgium

SENER Presents Two FORAN Papers at the Morintekh

In June, the SENER engineering and technology group participated in the 17th Morintekh – Praktik 2016 Scientific Conference, in the city of St. Petersburg, Russia.

News

Kerry to Press ASEAN meeting for talks on SCS Disputes

U.S. Secretary of State John Kerry will urge Southeast Asian nations in meetings in Laos next week to find diplomatic ways to launch talks with China on easing

US Navy Tests Latest Aegis Weapon System

The U.S. Navy conducted a series of cooperative air defense test exercises with the Spanish navy that culminated in live missile firing events using the latest Aegis Weapon System baseline July 20-21.

Pathogenic bacteria hitchhiking to North and Baltic Seas?

For the first time, AWI scientists have found evidence of living, potentially pathogenic vibrions on microplastic particles. With increasing water temperatures

Insurance

ABS Advisory Solutions Integrate ERM

ABS Group anticipated the update to Circular A-123 from the United States (US) Office of Management and Budget (OMB) requiring US executive departments and agencies

Verweij Hoebee Groep Extends Service Portfolio with Management Audits

Verweij Hoebee Groep has expanded its service portfolio with the introduction of management audits of ship owners.   This unique prevention concept goes beyond

BP Puts Tab for Gulf Disaster at $62 Bln

BP announced today that following significant progress in resolving outstanding claims arising from the 2010 Deepwater Horizon accident and oil spill, it can now

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0941 sec (11 req/sec)