New class of insurance coverage included
Lloyd’s specialist insurance market decided to amend its risk codes to include a new class of insurance covering seafarer abandonment (SA).
Lloyd’s provides guidance to underwriters on the classification of business into various categories using a risk coding scheme which provides a common basis for the classification and description of risk.
The Maritime Labour Convention, 2006 (MLC) will enter into force on 20 August2013. MLC stipulates that seafarers have the right to be repatriated at no cost tothemselves “in the event of the shipowner not being able to continue to fulfil theirlegal obligations as an employer of the seafarers by reason of insolvency”.
Lloyd’s has agreed to exempt the underwriting of the costs of repatriation ofabandoned seafarers, following insolvency of the shipowner, from the rulesgoverning Financial Guarantee. However, individual syndicates will need to obtainexpress approval from Lloyd’s Performance Management Directorate (PMD) to writethis business.
PMD has agreed to introduce a new risk code for Seafarers Abandonment. Thiscode will be affective from 1st January 2014. All policies which incept on or after thisdate should be coded using the revised risk code, together with any returnssubmitted to Lloyd’s.
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Last month, Seacurus launched CrewSEACURE, a new insurance policy to indemnify seafarers in the event of the financial default of their employers which, for the first time, offers recompense in respect of unpaid crew wages. The policy will enable all employers of seafarers to meet their regulatory obligations under the Maritime Labour Convention 2006 (MLC), which enters force on 20th August, 2013.
Source: Lloyd’s, Crewseacure