IG proposes extension to clause to P&I Rules (#Marine Liability)

The International Group of P&I Clubs  has proposed to provide the necessary Maritime Labour Convention (MLC) certification that will be required by new amendments by way of an extension clause to its P&I rules. This would indemnify the seafarers directly should the requisite MLC event occur. However, this will be with a right of indemnity from Members, and on the basis that these new MLC liabilities will not fall within the IG’s existing pooling arrangements.

updated its members on the Maritime Labour Convention (MLC).

The MLC entered into force on 20 August 2013. In April 2014 the International Labour Organisation (ILO) agreed several amendments to the MLC to implement the principles agreed back in 2009 by the joint IMO/ILO financial security working group. These amendments will enter into force on 18 January 2017.

Ships that are subject to the MLC will, after this date, be required to display certificates issued by an insurer or other financial security provider confirming that insurance or other financial security is in place for the cost and expense of crew repatriation, as well as up to four months contractually entitled arrears of wages and entitlements following abandonment A further certificate will be required for liabilities for contractual claims arising from seafarer personal injury, disability or death.

All IG Clubs have agreed to participate in the separate group reinsurance arrangement in the event a Club becomes liable for its Members’ financial default resulting in seafarer abandonment. “Placing this reinsurance is currently a work in progress, but discussions with the reinsurance market have been positive”, the IG said in its update, adding that “the IG will continue to work on the detail of these security arrangements to ensure that when the MLC amendments do enter into force, in January 2017, owners will have the requisite certification in place, and seafarers and States will have the comfort afforded by a Group-backed scheme”.