According to the Notice, liabilities arising under the certificates, such as compensation for death or long-term disability, 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. If the Club is required to meet those liabilities in the first instance under its certificate, operators will have to reimburse the Club.
This can be seen in the terms of the MLC Extension Clause 2016 against which the West of England Club issues MLC Certificates. The MLC Application Form that Members are required to sign to get their Certificates, binds all Co-Assureds, Operators and Joint Operators to the terms of the MLC Extension Clause and includes a warranty that the party signing the Application Form has the authority of all those parties to so bind them.
"This Notice is therefore intended to remind 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, and to remind all Members and Joint Member that they are jointly and severally liable to reimburse the Club for any MLC liabilities falling outside standard P&I cover. Thus, if the Member fails to meet the obligation the Club will look to other Members and all other Joint Member/Joint Entrants on the policy to make good the debt," the West of England Club informed.