Maritime Labour Convention 2006 as amended (MLC) – Liability for uninsured MLC liabilities

All clubs in the International Group have notified their clients about the implementation of financial certification requirements in accordance with the amendments to the Maritime Labour Convention 2006 (MLC).

As previously notified by clubs, whilst some of the liabilities arising under the certificates – i.e. compensation for death or long-term disability in accordance with Regulation 4.2., Standard A4.2. and Guideline B4.2. – would be covered by standard P&I cover, the liabilities for outstanding wages and repatriation of seafarers, together with incidental costs and expenses in accordance with MLC Regulation 2.5, Standard A2.5.2 and Guideline B2.5 would fall outside of cover. Therefore, should a Club be required to meet those liabilities in the first instance under its certificate, Members subsequently would be obliged to reimburse the Club concerned.

This position is reflected in the terms of the MLC Extension Clause 2018, against which Clubs issue MLC Certificates. The MLC Application Form that Members are required to sign to obtain their Certificates explicitly binds all Co-Assureds, Members and Co-Assureds/Joint Members/Joint Entrants to the terms of the MLC Extension Clause and now includes a warranty that the party signing the Application Form has the authority of all those parties to so bind them.

The Clubs have reminded their Members of the need to obtain the authority of all joint assureds on the policy to sign the Application Form on their behalf and to bind them to their obligations under the MLC Extension Clause. The Clubs reminded all Co-Assureds/Members and Joint Member/Joint Entrants that they were jointly and severally liable to reimburse the Club for any MLC liabilities falling outside standard P&I cover. Thus, if a Member failed to meet the obligation the Club would look to other Co-Assureds/Members and all other Joint Member/Joint Entrants on the policy to make good the debt.