Shipowners' Club P&I Offers MLC 2006 Wage Insurance
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 - or from the Shipowners’ website -
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 Today

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

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

People & Company News

Euroseas Sells C/V Marinos

Euroseas Ltd.  an owner and operator of drybulk and container carrier vessels and provider of seaborne transportation for drybulk and containerized cargoes,

Bill on Danish Maritime Planning Submitted

The bill is to form the basis of a maritime planning act intended to promote economic growth and development of sea areas. The Danish Maritime Authority is to head the work.

Plans to Create Rio Doce Fund

Vale and BHP Billiton announced today plans to work together, with Samarco, to establish a voluntary, non-profit fund to support the rescue and recuperation of the Rio Doce river system,


Lighter, Longer-lasting Laminate from Dimension-Polyant

Dimension-Polyant, part of the DEUTSCHE YACHTEN working group, has developed a longer-lasting but lighter surface laminate for the discerning owner and skipper,

Extended Warranty from Yanmar for Sailboat Engines

Yanmar Marine International B.V. has introduced an extended 3 years’ period of YANMAR Limited Warranty for Sailboat Engine Models. This extended warranty of

Simrad HALO Radar Wins 2015 Design Award

Simrad HALO Pulse Compression Radar, the world’s first high-performance recreational solid-state, open-array radar system with pulse compression technology, has


Gates to Launch Mega Clean Tech Initiative

Microsoft co-founder Bill Gates will launch a multi-billion-dollar clean energy research and development initiative on Monday, the opening day of the U.N. climate change summit in Paris,

Extended Warranty from Yanmar for Sailboat Engines

Yanmar Marine International B.V. has introduced an extended 3 years’ period of YANMAR Limited Warranty for Sailboat Engine Models. This extended warranty of

S&P Raises Steamship Mutual outlook to Positive

Poor’s has revised its outlook on Steamship Mutual to Positive from Stable. The A- financial strength rating has been reaffirmed. In their announcement Standard

P&I Clubs

North Group Increases Projected Free Reserve

Directors of the North P&I Club and Sunderland Marine Insurance Company (North Group) have revised their projection for the group’s year-end free reserve up to $380 million,

American Club Announces 2.5% Increase

At its meeting in New York on November 20, the American Club’s board resolved to levy a general premium increase of 2.5 percent for P&I cover, but no increase in

British Forces Assist Stricken Cruise Liner

Military assets deployed in support of Falkland Island government in cruise ship rescue. In support of the Falkland Island Government, British forces based in

Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pod Propulsion Ship Electronics Shipbuilding / Vessel Construction 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: 0.1735 sec (6 req/sec)