The Republic of the Marshall Islands has issued a marine safety advisory to explain a recent case which occurred with respect to the entity named on the MLC certificates of financial security for death and long-term disability. A number of RMI vessels have been issued deficiencies by Port State Control PSC due to these certificates which were required to be posted on board beginning 18 January 2017.
However, RMI says there was a misunderstanding as to what is required and why the named entity on the financial security certificates necessarily may differ from that on the Maritime Labour (ML) Certificate and Declaration of Maritime Labour Compliance (DMLC) Part II.
In the advisory, RMI states:
‘’There appears to be a misunderstanding as to what is required and why the named entity on the financial security certificates necessarily may differ from that on the Maritime Labour (ML) Certificate and Declaration of Maritime Labour Compliance (DMLC) Part II. The MLC, 2006 financial security certificates are issued to the ships directly by the entities providing the liability coverage (i.e. Protection and Indemnity (P&I) Clubs or insurers). It is normal practice for the Registered Owner (rather than the International Safety Management (ISM) Document of Compliance (DOC) holder) to be the insured person for the purposes of P&I insurance coverage arrangements. As a result, it is possible that the responsible party named on the ML Certificate and DMLC Part II (the DOC holder) will differ from the party named on the new financial security certificates (Registered Owner)’’
Furthermore, RMI notes that shipowners and insurance providers will face a very significant obstacle if they are presented with a demand to produce MLC, 2006 financial security certificates/attestations in the name(s) of persons or entities that are named on the DOC.
Click herebelow to read the advisory
Source: RMI
