The news was welcomed by insurance intermediary Seacurus which launched the CrewSeacure policy, last month, that ensures seafarers are paid in the event of the financial collapse of their employers, where wages would be left unpaid otherwise. The policy enables all employers of seafarers to meet their regulatory obligations under the Maritime Labour Convention (MLC 2006), which enters force in August.
Seacurus lauded the decision and managing director Thomas Brown said: “This new class of insurance is very welcome and very timely. Seafarer Abandonment is classed as financial guarantee insurance, meaning that any Lloyd’s syndicate wanting to write it will need approval from the Lloyd’s performance directorate to do so. Seacurus, acting as the managing general underwriter for Lloyd’s Brit Syndicate under a fully delegated underwriting authority, has that approval.
“MLC 2006 recognises the need to ensure that seafarer recruitment and manning agencies do not supply seafarers to shipowners without the requisite financial protection in place. Such protection provides a financial safeguard to seafarers in the event that they are left abandoned as a result of the financial failure of the shipowner.
“Many of the enquiries we have received to date have been from manning and recruitment agents trying to satisfy these obligations. A number of these agents are very concerned about supplying seafarers to vessels without this level of protection in place. Those agents who do refuse to provide seafarers who are not protected in this way will be acting in accordance with the requirements of MLC, and industry will effectively be regulating industry, at the same time encouraging best employment practice.”