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 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Danos Fabrication Facility Creates 150 Jobs

Danos, a family owned oil and gas service company, announced plans to expand its fabrication capabilities, by opening a 120,000 square-foot fabrication facility in Amelia, La.

US’ Largest Floating Drydock Heads to Portland

The country’s largest floating drydock, the Vigorous, is headed for Portland this weekend. The drydock, a piece of equipment used to lift vessels as large as cruise ships out of the water,

Transocean Fleet Update Summary

Transocean Ltd. today issued a monthly fleet update summary which includes new contracts, changes to existing contracts and changes in estimated planned out-of-service

Insurance

Swedish Club Results Show Improvement

The Swedish Club today announced its half-year results in which it reported that the club continued to demonstrate a solid performance in the first six months of

'Double Jeopardy – Trial by Media, Trial by Law' London Opening

BIMCO notes that the highly acclaimed "Double Jeopardy - trial by media, trial by law" first showcased at the BIMCO AGM in Dubai earlier this year is to be brought

HK's COSCO International Reports Strong Profit Growth

For the  six months ended 30th June 2014, shipping services provider COSCO International has announced that its 2014 Interim Results show strong profit growth with Net Profit up 45% YOY.

P&I Clubs

Swedish Club Results Show Improvement

The Swedish Club today announced its half-year results in which it reported that the club continued to demonstrate a solid performance in the first six months of

American Club Issues Steel Cargo Warning

The American P&I Club has updated its advice to members on the handling of steel cargoes. It has done so in consequence of some recent cases where the absence of

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Naval Architecture Navigation Pipelines Salvage Ship Electronics Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1558 sec (6 req/sec)