The details of the impact of the 2014 MLC amendments regarding seafarer liability and compensation were discussed at length during a dedicated 'People Risks' panel-session at the International Group of P&I Cubs Correspondents Conference this week in London.
Since 18th January, 2017 ships that are covered by the duties and obligations set out in the ILO’s 2006 Maritime Labour Convention (MLC), as amended, have been required to maintain financial security for specific liabilities to crew members in the event of their abandonment.
In order to meet this requirement on shipowners and to facilitate the smooth entry into force of this important measure for seafarers, the IG clubs have agreed to provide the certification required under the Convention and have arranged reinsurance cover, which provides in total $200 mill MLC abandonment cover.
This IG MLC reinsurance arrangement was developed to ensure that shipowners can demonstrate compliance with the requirements of the 2014 amendment to the MLC, requiring vessel owners to maintain financial security for the cost and expense of crew repatriation in cases of seafarer abandonment, including liability for up to four months' arrears of wages and entitlements. A separate financial security certificate is required for contractual claims arising from seafarer personal injury, disability or death (MLC Standard A4.2, as amended).
Andrew Bardot, IG’s secretary and executive officer, commented: "The provision of Certificates backed up by this particular reinsurance arrangement is a significant move for the IG, and all of our member clubs, who have worked closely together to develop a means for providing owners with the additional financial cover that they need to meet the latest MLC requirements.
“The reality is that they would not have been able to do this on the commercial insurance market on the same terms. By developing a solution that spreads both the risk and the cost of these requirements across the global fleet, the IG can provide owners with a commercially viable solution to a regulatory requirement that was needed in order to enhance the welfare of our crew. It is an important step forward for all parties involved," he said.
The industry panel discussing the issue was chaired by Birgitta Hed, Senior Claims Manager, The Swedish Club (and Chairman of the IG Personal Injury sub-committee), with speakers Jonathan Hare, Senior Vice President and General Counsel of Skuld (and Chairman of IG Compulsory Insurance sub-committee), Katie Higginbottom, Projects and Campaigns Leader for The International Transport Worker's Federation (ITF), Ella Hagell, Divisional Director, Tindall Riley (Britannia P&I Club), and Andrew Wright, Secretary General of the seafarer's welfare charity - Mission to Seafarers.
Jonathan Hare, said: "The collective agreement developed by IG and provided through its member clubs offers a boon to owners on MLC amendments, which could otherwise have proven very costly. But of course, addressing the issue of abandonment is not purely financial. It is about providing support to crews when they need it most – ensuring that they have access to food and water, fuel and medical supplies while they are awaiting repatriation; working to secure visas and repatriation travel, and paying unpaid wages.
"The role of P&I correspondents in providing this critical link between the insurance providers and the crew on board, in acting as a conduit in working with seafarers' representatives, such as the ITF and organisations, such as the Mission to Seafarers and the work they do to in ensuring care is exercised in all cases of abandonment, should not be overlooked."
In addition, Cambridge based Coracle Online, a privately owned, investor backed EdTech company, has confirmed that its Osprey-VLE platform underpins the announcement by the IG that its professional qualification programme, the P&I Qualification (P&IQ), is to be opened to all listed Group P&I correspondents.
P&IQ is the only professional qualification available specifically for the P&I industry. With the help of Coracle’s exam management services, more than 1,000 P&IQ exams have been sat by Club employees to date. As from end October, 2017, Coracle will support IG in the roll out of the system to the Group correspondents, as well continuing to support the Clubs.
Coracle founder and former shipbroker, James Tweed, said, “Coracle have been supporting learners from over 70 countries in the maritime field for the past decade. P&I is a complex area of marine insurance, requiring those involved to have a detailed understanding of both the maritime industry and the particulars of P&I cover and risks. We are pleased to be part of the process of extending the accessibility of this qualification to the global network of correspondents.”