MLC Certificates of financial security:
The Maritime Labour Convention 2006 (MLC) entered into force in the UK on 7 August 2014, following ratification of the Convention in August 2013. As is already well known, the MLC sets out minimum working and living rights for the world’s 1.2 million seafarers and has been referred to as the seafarers’ Bill of Rights. It has replaced 68 international labour standards relevant to the maritime sector which have been in place for 80 years and it consolidates many existing ILO conventions.
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, including payment of unpaid wages and entitlements following abandonment. These amendments entered into force on 18 January 2017.
Ships that are subject to the MLC are 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 (MLC Regulation 2.5.2, as amended). A further certificate is required for liabilities for contractual claims arising from seafarer personal injury, disability or death (MLC Standard A4.2, as amended).
The website intends to provide information as to the arrangements made by the club to assist members in complying with these MLC financial security requirements.
MLC Extension Clause:
Clubs are able to provide MLC Certificates on the basis set out in the MLC Extension Clause. This provides that the club will pay claims advanced by seafarers which fall within the scope of the Regulations and Standards specified in the MLC Certificates. The clause also provides that if such payments fall outside the scope of standard cover, members will be obliged to reimburse the club.
Maritime Labour Convention Extension Clause 2018
The International Group has compiled FAQs for in respect of the recent amendments to the MLC. While efforts have been made to provide clarity, uncertainty remains on some aspects of the financial security requirements. There may also be differences in the way some states implement and enforce the amendments. These FAQs should not be regarded as providing definitive legal advice and members should also consult their flag state authorities.
International Group FAQs for members
To request MLC Certificates, members should download the application form below. The application form must be printed on company headed paper and signed by an authorised signatory.
Members are reminded of the need to obtain the authority of all joint entrants on the policy, to sign the MLC Application Form on their behalf, and to bind them to their obligations under the MLC Extension Clause, and members and joint entrants are also reminded that they are jointly and severally liable to reimburse the club for any MLC liabilities falling outside standard P&I cover.
The club has prepared a schedule in Excel format, which is to accompany the application form and in which members should enter details of the ships which require MLC Certificates.
The signed application form and completed schedule must be returned to members’ broker or usual club contact.
Members are also requested to provide an estimate of the maximum numbers of seafarers serving on board each ship. Whilst this information is not compulsory it will assist the club in assessing exposure.
Members are reminded that once they have received their MLC Certificates, these must be printed by the member and displayed in a conspicuous place on board the ship, where they are available to seafarers.
In order to identify whether a vessel has MLC Certificates of financial security, you can use the ship finder search here.