Shipowners' Club P&I Offers MLC 2006 Wage Insurance

MarineLink.com
Monday, February 24, 2014
Ian Ferns: Photo courtesy of Shipowners' Club

In response to specific market demand for insurance cover not formerly available, the Shipowners’ Club has launched a policy for its high net worth super yacht client base to indemnify them against Seafarers Unpaid Wages Following Abandonment (SUWFA).

Although some 80% of the world’s gross tonnage of shipping has been signed up to the Maritime Labour Convention 2006 (MLC), there are still many owners and managers unsure as to the extent and applicability of some of the provisions.  Crucially, this uncertainty includes the Convention’s requirement for 'financial security' (in practice, compulsory insurance) to be guaranteed by the vessel owner, leaving them liable for any unpaid wages owed to the crew.
 
Ian Ferns, Business Development Manager, explains the Club’s reasoning in introducing the cover, “We have noted that the issue of whether unpaid wages need cover continues to divide opinion. While we agree with our fellow International Group* members that such cover is yet to be mandatory , we have been inundated with requests to provide cover. Our yacht-owning Members are faced with the request for a guarantee of “financial security” as a contractual condition on a daily basis.  We have therefore decided to assist."
 
Importantly the Shipowners’ product responds specifically to abandonment.  Once more Ferns explains, “Rather than being triggered by insolvency, which is the norm used by other products, as soon as the crew detect that their employer may be failing in its duty to meet their agreed wage payments, the Club can be called upon to act. The declaration of the employer’s insolvency may, of course follow long after the crew has been abandoned.  Their need is for immediate help.”
 
The SUWFA policy is the latest initiative taken by Shipowners’ to respond to the particular demands of the super yacht sector and follows the Club’s first move to distil P&I Club liability cover into a neat, jargon free policy document; that ‘all risks’, plain language yacht policy, launched in 2011, has proved a great success.
 
Ferns concludes, “Our abandonment insurance, reducing uncertainty at a stroke and demonstrating our commitment to total crew welfare, is the latest manifestation of the Club’s policy of adapting its services in accordance with members’ requirements.”
 
Further details of the SUWFA policy and cover are available from Ian Ferns - ian.ferns@shipownersclub.com or from the Shipowners’ website -    www.shipownersclub.com
 
The Shipowners’ Club is a member of the International Group of P&I clubs. Its 13 members uniquely share their claims losses via a Pooling Agreement, which is backed by a joint reinsurance programme.
 
 

 

Maritime Reporter August 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

3Si Group Launches Offshore Division

3Si Group, whose global portfolio of marine safety products and services covers commercial, leisure and military markets, has announced the formation of 3Si Offshore,

Canadian Frigates Get a Radar Upgrade

German navigation system manufacturer Raytheon Anschütz has completed factory acceptance tests and delivery of 12 sets of navigation radars for the Canadian Navy’s Halifax-class frigates.

ISS Appoints Holmes as VP, Cruise Solutions

Inchcape Shipping Services (ISS) said it is embarking on a plan to develop its cruise business with the appointment of Grant Holmes as Vice President, Cruise Solutions.

Yachts

Elandra Yachts Expands Gold Coast Operations

Australia’s newest luxury motor yacht brand Elandra Yachts has expanded its Gold Coast operations on the back of rapid growth and increased interest from Australian and international buyers.

Palmer Johnson Yatchs Shuts Sturgeon Bay, Moves to Europe

Luxury yacht manufacturer Palmer Johnson Yachts is closing its production facilities in Sturgeon Bay because of dwindling sales and competition from overseas.   In

Man Earns Jail Time for Hoax Coast Guard Calls

A man found guilty of making numerous hoax calls to the U.K. Coastguard has been jailed for four months, the U.K. Maritime and Coastguard Agency (MCA) reported.

Insurance

Enclosed Space Casualties Continue in Shipping Industry

Accidents relating to entry into enclosed spaces have resulted in a large number of deaths of both ship and shore personnel so far this year. David Nichol, UK P&I Club risk assessor,

MN 100: Continental Underwriters, Ltd.

The Company: Continental Underwriters, Ltd. is a national, multiline firm for all types of marine coverage. The firm offers both admitted and non-admitted products in all 50 states,

Syncrude Uncertain about Plant Fire Affecting Production

The operator of Canada's largest synthetic crude project said on Saturday it is investigating the causes of an early morning fire at an upgrading plant. Firefighters extinguished the blaze,

P&I Clubs

Enclosed Space Casualties Continue in Shipping Industry

Accidents relating to entry into enclosed spaces have resulted in a large number of deaths of both ship and shore personnel so far this year. David Nichol, UK P&I Club risk assessor,

Iranian Ship, Crew Escape Captivity off Somali Coast

An Iranian fishing vessel and its crew have escaped after being held captive for five months by Somali fishermen, maritime piracy experts said on Friday, but it

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Simulators Sonar 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: 0.4011 sec (2 req/sec)