Seacurus Launches Marine Insurance Coverage for Unpaid Crew Wages

Marine insurance intermediary Seacurus has launched a new insurance policy to indemnify seafarers in the event of the financial default of their employers and includes 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 goes into effect August 20, 2013.

The new policy, CrewSEACURE, provides up to $10 million of cover in the event of an employer’s financial default. It includes personal accident protection and covers medical expenses as well as subsistence and repatriation costs. It will also respond to the non-payment of seafarers’ wages, for a period of up to six months.

CrewSEACURE is underwritten by A-rated global insurers in the Lloyd’s and Co. markets in London. It offers independent 24/7 claims service managed by Thomas Miller Claims, a worldwide maritime ‘people claims’ service provider. It also includes a claims mandate which protects the interests of shipowner and seafarer alike. A 24-hour helpline is available for seafarers and their advisers, who are afforded direct access to the insurers’ claims adjusters.

Seacurus will act as the managing general underwriter for the CrewSEACURE product, with access to Lloyd’s security led by Brit Syndicates Ltd. and companies’ market security provided by Aspen Insurance UK Ltd.

CrewSEACURE provides cover which meets flag state and port state control approval, and is authenticated by a ship-specific MLC2006 insurance certificate to demonstrate compliance with the Maritime Labor Convention.

“The shipping industry faces economic challenges. Not all shipowners and operators will survive the current global recession, and this will inevitably have a knock-on effect on those seafarers who are caught up in the resulting bankruptcy cases,” said Thomas Brown, managing director of UK-based Seacurus. “The fact is that any cover that does not provide for the indemnification of unpaid wages fails to adequately protect seafarers against the real risk of abandonment. History shows that the only way for seafarers to recover unpaid wages in the absence of any form of financial security is to remain on board until the ship is sold. This serves only to make matters worse for the shipowner as well as for seafarers and their families, who suffer further financial loss and hardship as a result of the long delays that can accompany the judicial sale of a vessel.”

CrewSEACURE removes the need for seafarers to remain on board an abandoned vessel by ensuring that they receive their unpaid wages before being repatriated home to seek new employment opportunities.

Topics New Markets