MLC 2006 as Amended: Financial Security Requirements

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  • The Maritime Labour Convention have been amended.
  • Regulation 2.5.2 and Regulation 4.2 are in place now.
  • These regulation will take care of financial security of the crew members following a ship abandonment.
  • Shipowners need to implement the 2017 regulation as soon as possible.

Shipowners now need 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), says a report in the skuld.com.

The new regulation came into effect on 18 January 2017 when amendments were done to the Maritime Labour Convention (MLC.) The MLC Regulation 4.2 further adds another clause for a certificate regarding liabilities of contractual claims arising from seafarer personal injury, disability or death.

At the time of entry into force, 81 states had ratified the Convention representing 81% of world gross tonnage. Although the amendments came into effect on 18 January, 2017 yet many of the states haven’t finalised implementing it. The Skuld started issuing these certificates from December 2016 itself but still it hasn’t been implemented properly.

An ILO Press Release summarises the consequences of the Amendments.

IG Circular dated 8 February 2018

This International Group circular provides a reminder about the potential exposure of members, coassureds and joint members under the MLC Extension Clause 2016 in relation to Certificates issued under Regulation 2.5.2.

Skuld Circular dated 16 November 2016

This circular contains:

  • information about the application process
  • Application form
  • MLC Extension Clause
  • IG MLC FAQs

IG Circular dated 7 October 2016

This International Group circular contains:

  • information about the entry into force of the MLC amendments
  • MLC Certificates
  • MLC Extension Clause
  • IG MLC FAQs

IG Circular dated 23 June 2016

This circular provided an interim report on measures being taken to enable Clubs top provide financial security.

MLC Extension Clause 2016

Information for members and seafarers regarding the certification and the terms of financial security.

INSIGHT

This section of the website provides general background information about MLC including an up to date list of ratifying states with dates of entry into force, ILO FAQs.

These extension demarcates the serious implications of defying the regulations and hence shipowners need to ardently follow them.

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Source: Skuld