Osprey Seafarer Abandonment
MLC Seafarer Abandonment Insurance Solution
Seafarer Abandonment Insurance, underwritten by Lloyd’s of London, provides cover for seafarers to shipowners (or any entity assuming the responsibility of the shipowner), crew management companies and seafarer recruitment and placement services in the event of the shipowners abandoning their crew or employers’ contractual default, all in line with the Maritime Labour Convention (MLC) 2006 and 2017 Legislation.
With effect from 18th January 2017, amendments to the MLC 2006 will require shipowners to provide evidence of cover by way of onboard certification. This certification will be proof that shipowners have a system of financial security in place that covers the following in the event of financial default:
- Up to four months of unpaid wages
- Medical cover following an event of abandonment
- Emergency subsistence and maintenance costs
- Cost of repatriation
55,000 vessels in the international fleet will need annual certification under the new MLC regulations, while over 1.5 million seafarers will benefit from this new coverage requirement.
We offer a full spectrum insurance solution that will ensure full compliance with these MLC regulatory changes from day one.
Do you require this cover?
The main criteria for shipowners (or those acting in the same capacity towards the crew) who will need this type of cover is as follows:
- Registered in one of the states where MLC is in force
- Or calling to a port in a jurisdiction where MLC is in force
- Or flying a flag that is a party where the MLC is in force
- Has vessels of 500GT or over
- Engages in commercial activities with their vessels
- Engages in international voyages
Still not sure if you or your client’s vessel need this cover? Why not contact our Team
MLC Insurance for Recruiters
The Maritime Labour Convention (MLC) 2006 already places an obligation on the 81 member states to ensure that Crew Management companies and Seafarer Recruitment and Placement Services domiciled in their jurisdiction have in place a system of protection to safeguard seafarers working at sea in the event of the employers’ contractual default.
In the same way as the MLC Abandonment insurance, it provides cover in line with the legislation, as a result of the employer’s contractual default, as follows:
- Up to two months’ unpaid wages or USD 10,000 whichever is less.
- Costs of repatriation up to USD 2,500.
The financial guarantee insurance, underwritten by Lloyd’s of London, was developed to comply with UK MCA guidance note MGN 475(M) and provides the policy holder with an MLC compliant certificate of financial responsibility (COFR).
Each product can be underwritten on policy forms specifically written, often with the applicant’s broker, to meet the needs of the insured.