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

People & Company News

AEU Presents Safety Awards

The American Equity Underwriters, Inc. (AEU) presented its 2014 Safety Awards at the annual American Longshore Mutual Association, Ltd. (ALMA) Conference on July 19, 2015, in Key Biscayne, Fla.

Hapag-Lloyd Names Haeser Next CCO

Container shipping line Hapag-Lloyd AG’s supervisory board has appointed Thorsten Haeser as a new executive board member in charge of Hapag-Lloyd’s global sales

MARAD to Host Meeting on Proposed Delfin LNG License

MARAD Announces Public Scoping Meetings for Proposed Delfin Liquefied Natural Gas Deepwater Port Export Facility.   On July 29, the Maritime Administration

Yachts

Maritime Museum Christens San Salvador Replica

The Spanish ship San Salvador is the embodiment of California’s origin story. The ship’s voyage in 1542, with Juan Rodríguez Cabrillo at the helm, established California

Super Yachts Give Boost to NZ Economy

New Zealand Customs Minister Nicky Wagner says mid-winter marks the end of another successful yacht season, with many of the remaining international yachts departing at the end of last month.

Four Rescued from Boat Fire in California

U.S. Coast Guard and firefighter crews helped rescue four people from a boat fire Tuesday afternoon in Alameda, Calif.   Coast Guard Sector San Francisco Command

Insurance

AEU Presents Safety Awards

The American Equity Underwriters, Inc. (AEU) presented its 2014 Safety Awards at the annual American Longshore Mutual Association, Ltd. (ALMA) Conference on July 19, 2015, in Key Biscayne, Fla.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Salvage Ship Electronics Ship Simulators 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: 0.1344 sec (7 req/sec)