The Merchant Shipping (Maritime Labour Convention) (Minimum Requirements for Seafarers etc.) Regulations 2014

[F1 PART 10A U.K. Security against shipowner’s liability for death or long term disability of seafarers

Textual Amendments

F1 Pt. 10A inserted (12.7.2018) by The Merchant Shipping (Maritime Labour Convention) (Compulsory Financial Security) (Amendment) Regulations 2018 (S.I. 2018/667), regs. 1, 2(7)

Interpretation of Part 10A U.K.

53A.   In this Part—

“shipowner’s security” has the meaning given in regulation 53C;

“shipowner’s security document” has the meaning given in regulation 53G(6).

Shipowner’s security requirement applicable to all ships U.K.

53B.— (1) A ship must not be operated unless—

(a) in the case of a ship in a category described in regulation 3(1)(a) or (b), a shipowner’s security is in force in relation to the ship; or

(b) in the case of a ship in the category described in regulation 3(3), financial security to assure compensation in the event of death or long term disability of seafarers arising from occupational illness, injury or hazard is provided in relation to the ship in accordance with paragraph 1 of Standard A4.2.1 of the MLC.

(2) A breach of paragraph (1) is an offence by the shipowner.

Shipowner’s security U.K.

53C.— (1) “Shipowner’s security” means a contract of insurance or other form of security relating to a ship that satisfies the first and second conditions.

(2) The first condition is that the shipowner’s security must provide financial assurance of an amount which the shipowner reasonably considers adequate to ensure that the shipowner will be able to meet any liabilities that the shipowner may have, including liabilities under seafarer employment agreements, to provide compensation in the event of death or long term disability to seafarers arising from occupational injury, illness or hazard.

(3) The second condition is that the shipowner’s security must provide that a claim for compensation may be submitted directly to the shipowner’s security provider by—

(a) any relevant seafarer who sustains a long term disability arising from a relevant occupational injury, illness or hazard; and

(b) the personal representatives of any deceased relevant seafarer, the death of whom arose from a relevant occupational injury, illness or hazard.

(4) In this regulation—

“relevant occupational injury, illness or hazard” means an occupational injury, illness or hazard—

(a)

occurring during the period of validity of the shipowner’s security; and

(b)

in relation to which the shipowner is, or may be, liable to provide compensation to the seafarer or, as the case may be, the seafarer’s estate;

“relevant seafarer” means a seafarer whose normal place of work during the period of validity of the shipowner’s security is, or was, on board the ship.

Payment of contractual compensation U.K.

53D.— (1) This regulation applies where a claim for contractual compensation is submitted to a shipowner’s security provider.

(2) A shipowner’s security provider must pay the contractual compensation to the seafarer, or the seafarer’s personal representative, within 7 days beginning with the date on which it is established that the shipowner is liable for the contractual compensation either—

(a) by agreement between—

(i) the shipowner’s security provider; and

(ii) the seafarer or the seafarer’s personal representative; or

(b) by order of a court or tribunal which is not subject to appeal.

(3) A shipowner’s security provider who fails to comply with paragraph (2) must pay to the seafarer, or the seafarer’s personal representative, interest on the unpaid amount at the rate of 20% per year beginning with the date that the shipowner’s security provider became satisfied of the shipowner’s liability.

(4) In this regulation, “claim for contractual compensation” means a claim for compensation in the event of death or long term disability of a seafarer arising from occupational injury, illness or hazard where the compensation payable in respect of the claim is set out in the seafarer’s seafarer employment agreement, and “contractual compensation” is to be construed accordingly.

Interim payments U.K.

53E.— (1) A seafarer is entitled to a payment (an “interim payment”) from a shipowner’s security provider if the following conditions are satisfied—

(a) the shipowner is liable to pay compensation to the seafarer due to the seafarer having sustained a long term disability arising from an occupational injury, illness or hazard;

(b) the occupational injury, illness or hazard occurred during the period of validity of the shipowner’s security;

(c) the shipowner’s security provides financial assurance in respect of the compensation mentioned in sub-paragraph (a);

(d) the full amount of compensation payable has not yet been determined; and

(e) the seafarer is suffering hardship.

(2) A seafarer entitled under paragraph (1) may make a request for an interim payment to the shipowner’s security provider.

(3) A request under paragraph (2) must be supported by evidence that the seafarer satisfies the conditions in paragraph (1).

(4) A shipowner’s security provider must within 14 days of receipt of the request from the seafarer determine whether the conditions in paragraph (1) are satisfied.

(5) If, in contravention of paragraph (4), a shipowner’s security provider does not determine whether the conditions in paragraph (1) are satisfied, it must make an interim payment within 21 days of the receipt of the request from the seafarer.

(6) Where a shipowner’s security provider determines that the conditions in paragraph (1) are satisfied, it must make the interim payment within 21 days of the receipt of the request from the seafarer.

(7) The minimum amount of an interim payment is—

(a) where an amount in respect of any part of the claim has been determined and payment of that amount would be sufficient to alleviate the seafarer’s hardship, the amount so determined; or

(b) where no amount in respect of any part of the claim has been determined, or the amount which has been determined is not sufficient to alleviate the seafarer’s hardship, the lower of—

(i) such amount as would alleviate the seafarer’s hardship; and

(ii) 75% of the likely total amount of compensation payable in respect of the claim as estimated by the shipowner’s security provider.

(8) Where, in contravention of paragraph (5) or (6), a shipowner’s security provider does not make an interim payment, the shipowner’s security provider must pay interest on the unpaid amount at a rate of 20% per year from the date of receipt of the request from the seafarer.

(9) A shipowner’s security provider who makes an interim payment may deduct the amount of the interim payment from the full amount of compensation payable in respect of the shipowner’s liability.

(10) A shipowner’s security provider who—

(a) has made an interim payment under paragraph (5); and

(b) subsequently determines that the conditions in paragraph (1) were not satisfied,

may recover as a civil debt the amount of the interim payment less any interest payable under paragraph (8).

(11) A shipowner’s security provider may recover as a civil debt any proportion of an interim payment which exceeds the full amount of compensation payable in respect of a claim.

Offence of undue pressure U.K.

53F.   A person is guilty of an offence if the person induces another to accept less than the full amount of compensation payable, as set out in a seafarer’s seafarer employment agreement, in respect of the death or long term disability of a seafarer arising from occupational injury, illness or hazard.

Duty to carry and display shipowner’s security document U.K.

53G.— (1) The shipowner must ensure that for each shipowner’s security in force in relation to the ship, a shipowner’s security document containing the information specified in Schedule 3 is carried on board.

(2) The shipowner must ensure that each shipowner’s security document that relates to the ship and is not in English, has with it an English translation.

(3) A breach of paragraph (1) or (2) is an offence by the shipowner.

(4) The shipowner and master of the ship must ensure that each shipowner’s security document that relates to the ship, together with any English translation, is displayed in a conspicuous place on board ship.

(5) A breach of paragraph (4) is an offence by the shipowner and the master of the ship.

(6) “Shipowner’s security document” means a certificate or other documentary evidence of a shipowner’s security issued by the shipowner’s security provider.

Termination of shipowner’s security on notice to the Secretary of State U.K.

53H.— (1) The termination by a shipowner’s security provider of a shipowner’s security before the end of its period of validity is effective only if the shipowner’s security provider gives at least 30 days’ prior notice to the Secretary of State.

(2) A notice under paragraph (1) must—

(a) be in writing; and

(b) include a copy of the shipowner’s security document.

Duty on shipowner’s security provider to notify the Secretary of State where a shipowner’s security has been terminated U.K.

53I.— (1) If a shipowner’s security provider terminates a shipowner’s security before the end of its period of validity, the shipowner’s security provider must give notice to that effect to the Secretary of State.

(2) A notice under paragraph (1) must—

(a) be in writing; and

(b) include a copy of the shipowner’s security document.

(3) Failure to give notice under paragraph (1) within the period of 30 days beginning with the date on which the shipowner’s security was terminated is an offence by the shipowner’s security provider.

Duty on shipowner to notify seafarers if shipowner’s security is to be terminated U.K.

53J.— (1) Where a shipowner becomes aware that any shipowner’s security that relates to the ship is to be, or has been, terminated before the end of its period of validity, the shipowner must give notice to that effect to all seafarers who work on the ship during the notification period.

(2) A notice under paragraph (1) must—

(a) be in writing;

(b) state the date on which the shipowner’s security is to be or was terminated; and

(c) be given as soon as reasonably practicable after the shipowner becomes aware that the shipowner’s security is to be or was terminated.

(3) A breach of paragraph (1) is an offence by the shipowner.

(4) In this regulation, the “notification period” means the period —

(a) beginning with the date on which the shipowner becomes aware that the shipowner’s security is to be, or has been, terminated before the end of its period of validity; and

(b) ending with the date that the shipowner becomes aware that the shipowner’s security has been replaced or reinstated.]