ROUND TABLE: What Does The MLC 2006 Mean For Global Insurers? by iPMI Magazine Health and Medical Insurance Assistance News Magazine

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MLC 2006 C-LEVEL EXECUTIVE ROUND TABLE BUSINESS FORUM EXCLUSIVE C-SUITE EXECUTIVE COMMENTARY FROM THE MARITIME AND COAST GUARD AGENCY , GLOBALITY HEALTH, INTEGRA GLOBAL, ALLIANZ WORLDWIDE CARE AND IMG

Crewsure Marine, the MLC compliant insurance solution for the marine Seeking outindustry. new life and new civilisations. No matter how undiscovered and alien your new country may feel, DKV Globality provides you with outstanding healthcare wherever you go. In human history, the most daring and adventurous discoveries have been made by brave seafarers. Even in the 21st With Globality CoGenio速 and Globality YouGenio速 we offer internationally operating companies and their century being a mariner is still a very challenging profession. But now, you can put your mind at rest because there is expatriate staff as well as individuals and their families flexible underwriting solutions, high-level products something new on the horizon: Crewsure Marine. with comprehensive outpatient, inpatient and dental insurance cover and market leading services around the Crewsure was founded specifically to develop and model insurance products for seafarers. Crewsure products are globe. Plus the advantage of covering pre-existing diseases in the insurance policy. Trust in our expertise. underwritten within Munich Re (Group), a worldwide leading risk carrier, offering financial strength and stability.

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Crewsure has joined forces with Globality Health, the expert for healthcare insurance solutions for expatriates, to offer ship-owners, ship-managers and manning agents comprehensive health insurance cover for their crews all Outstanding care for outstanding people. DKV Globality is the international over the world. Crewsure Marine insurance provides cover for crews including medical benefits, personal accident, health insurer with a special focus on expatriates. As a member of Munich Health with more than 5,000 loss or delay in delivery of baggage, repatriation following abandonment and much more. Backed-up by a Crewsure experts at 26 locations worldwide we offer innovative healthcare solutions for clients and partners all over insurance plan, mariners now have the ultimate peace of mind when going out to sea. the world. As an integral part of the Munich Re Group, we give you the financial strength and security of one of the worldâ&#x20AC;&#x2122;s leading insurers and reinsurers. If you provide Marine benefits to staff or are an intermediary with Marine clients please contact Ms Heather Rodden on phone number +44 (0) 207 489 2054 or Call our consultants at +352 270 444 2201 or send an e-mail to Heather.Rodden@crewsure.com visit www.dkv-globality.com to find out more.

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Maritime Labour Convention 2006 Executive Round Table Business Forum

FEATURED CONTENT In the nine months since the ILO’s historic Maritime Labour Convention 2006 came into force, the impact across the globe of this comprehensive international legal standard has accelerated rapidly.

As of APRIL 2014 there have been 57 ratifications by ILO Member States. With well over a million seafarers and thousands of ship owners now covered by a single, comprehensive labour standard, iPMI Magazine

iPMIM

07 Forward With Philip Wright CCO Globality Health

speaks with leading experts from the Maritime and Marine insurance business, to find out what the MLC 2006 really means for global insurers operating in an industry so crucial to global trade.

08 Round Table Questions 13 Round Table: What Does The Maritime Labour Convention 2006 Mean For The Global Insurance Industry?

36 iPMI Magazine Speaks With ........ FRONT COVER A lighthouse stands strong offering 24/7 protection to the international maritime, marine and shipping industry.

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40 Claims Arising From Maritime Emergencies Can Be Huge 43 New Measures To Protect Seafarers From Abandonment 45 Shipping Losses Decline, Emerging Risks Pose Serious Challenges To Marine Industry And Insurers 49 Republic Of The Congo Ratifies The MLC 2006 51 ILO and Maritime Sector Address Abandonment Of Seafarers And Shipowners’ Liability

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33 New Cover For The Untapped Seafarers Market From Globality Health

Healthcare Solutions for the Marine Industry

CrewSure The MLC insurance solution for ship-owners, ship-managers and manning agents. Supporting the employer by insuring the employee. Seafarers deserve the same care and concern, the same right to benefits, the same access to

the best medical treatment and the same security expected and enjoyed by those who work ashore. Crewsure is underwritten by Globality Health and KA Kรถln.Assekuranz, both part of Munich Re,

a worldwide leading risk carrier. Crewsure offers flexible healthcare insurance solutions specifically

designed for the need of people from the marine industry. Insurance plans include medical benefits, personal accident, loss or delay in delivery of baggage and repatriation and unpaid wages following abandonment.

For further information please contact Ms Heather Rodden at phone number +44 (0) 207 489 2054 or send an e-mail to Heather.Rodden@crewsure.com Crewsure. Insurance for you and your crew.

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Maritime Labour Convention 2006 Executive Round Table Business Forum

Roundtable

The Maritime Labour Convention 2006 was adopted at a Maritime session of the International Labour Conference in 2006 and came into force on 20 August 2013. To date, 56 ILO Member States have ratified the Convention, representing more than 80 percent of the worldâ&#x20AC;&#x2122;s gross tonnage of ships. There are more than 1.5 million seafarers in the world. A majority of these seafarers now have a right to be protected through national laws and practices applying the MLC, 2006 to the ships on which they work. Title 4 of the MLC covers Health Protection, Medical Care, Welfare and Social Security Protection. From August 20th 2013 all vessels over a certain size have to comply with a new

labour convention known as the Maritime Labour Convention (MLC) 2006. We hope you enjoy this important round table discussion. With Kind Regards,

Philip Wright Chief Commercial Officer

Roundtable

QUESTIONS 16 | Q1

WHAT HAS THE MARITIME LABOUR CONVENTION MEANT FOR THE INSURANCE INDUSTRY?

18 | Q2

WHAT INSURANCE PLAN DO YOU PROVIDE FOR THE MARITIME AND MARINE INDUSTRY?

20 |

21 | Q4

WHAT CHALLENGES DO INSURANCE COMPANIES FACE IN THE MARINE AND MARITIME INDUS-

23 | Q5

HOW COMPLEX AN OPERATION IS THE REPATRIATION OF CREW IN THE CASE OF AN INCIDENT?

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WHAT OPPORTUNITIES EXIST FOR INSURERS IN THE MARITIME AND MARINE BUSINESS?

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10 |

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QUESTIONS 25 | Q6

IN THE CASE OF A MASS CASUALTY DISASTER, HOW PREPARED IS THE INDUSTRY TO RESPOND?

27 | Q7

HOW POPULAR ARE SERVICES LIKE EMPLOYYEEE ASSISTANCE PROGRAMS IN THE MARITIME INDUSTRY?

29 |

30 | Q9

WHAT IS IMPORTANT WHEN DESIGNING MARITIME AND MARINE HEALTH INSURANCE PLANS?

33 | Q10

HOW WILL THE MARITIME AND MARINE INDUSTRY DEVELOP OVER THE NEXT 5 YEARS?

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HOW CAN MARITIME INSURANCE PLANS ASSIST IN THE FIGHT AGAINST PIRACY?

Healthcare Solutions for the Marine Industry

the best medical treatment and the same security expected and enjoyed by those who work ashore. Crewsure is underwritten by Globality Health and KA Kรถln.Assekuranz, both part of Munich Re,

a worldwide leading risk carrier. Crewsure offers flexible healthcare insurance solutions specifically

For further information please contact Ms Heather Rodden at phone number +44 (0) 207 489 2054 or send an e-mail to Heather.Rodden@crewsure.com Crewsure. Insurance for you and your crew.

www.crewsure.com

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Maritime Labour Convention 2006 Executive Round Table Business Forum

PHILIP WRIGHT CCO Roundtable

I am the Chief Commercial Officer for Globality Health, which is part of Munich Health, the health segment of Munich Re. Like many I ended up in health insurance through circumstance rather than design. Having taken a business degree in Scotland I went in to hotel management and then moved in to sales and marketing roles in travel, charities and an energy company. I started a career in health insurance with BUPA as part of the team that managed all large corporate accounts; at that time this was around 25% of the UK book. I joined BUPA mainly because I really liked the way my new boss interviewed me and have now spent 20 years in the industry. Following BUPA I joined Standard Life Healthcare (SLH) and spent 8 years on the board running sales and then operational divisions. During this period we moved from being heavily criticised for our service to

winning 7 awards in one year including Best Health Insurer. I also managed the project to merge SLH with FirstAssist following that acquisition. After SLH I joined Munich Health to head up the health reinsurance team for UK and Ireland working with a wide range of insurers and MGAs to develop their insurance offerings. Moving within the group to Globality Health, I first set up the UK branch and after a year was made responsible for global sales and marketing as CCO. During this time we joined with Crewsure to offer the first MLC compliant product for seafarers to include health, PA, reparation and luggage in one simple product. It is great to be part of a large group which can bring together so many health options under the one division of Munich Health. Globality Health will continue to use this strength to grow. l

Maritime Labour Convention 2006 Executive Round Table Business Forum

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PHILIP CATTERTON CHIEF EXECUTIVE OFFICER

TODD HANCOCK CHIEF OPERATING OFFICER

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SUSAN LANDERS HEAD OF MARKETING AND CLIENT MANAGEMENT

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Maritime Labour Convention 2006 Executive Round Table Business Forum

WHAT HAS THE MARITIME LABOUR CONVENTION MEANT FOR THE INSURANCE INDUSTRY?

PHILIP WRIGHT: I think a more important question is: What does the Maritime Labour Convention mean for Sea Farers? Seafarers deserve the same right to benefits, the same access to the best medical treatment and the same security expected and enjoyed by those who work ashore. For too long the challenging life of the seafarer has gone unnoticed, but due to the MLC this is now changing. Legislation brings reform and improvements to working conditions, granting the same care and concern that shore side employees receive and benefit from. For the insurance industry, the MLC 2006 equals a reconsideration of how to best provide insurance solutions for seafarers. It also means continuing debate. Should seafarers remain insured as beneficiaries of a Ship owner’s Liability policy, or should they properly be ‘insured persons’ in their own right? We believe that the Convention envisages seafarers being provided benefits in the same way as employees ashore are looked after. In fact it states this in terms.

Regulation 4.1.4 states that the “requirements for on-board health and medical care set out in the Code include standards for measures aimed at providing seafarers with health protection and medical care as comparable as possible to that which is generally available to workers ashore.” PHILIP CATTERTON: Good question. The MLC calls into question how best to provide health insurance cover to the maritime community, whilst raising awareness as to the importance of comprehensive health cover for sea farers. The MLC provides a framework to develop sea farer health services and insurance plans. How best to work with ship owners, P and I clubs and the more niche specialist areas of the marine business like the cruise liner and charter yacht sectors. The MLC also provides a level of certainty and stability for insurers; a regulatory environment and a level playing field where we all play by the same rules. This pushes insurers to innovate in maritime insurance plan design whilst evolving the way we deliver service.

TODD HANCOCK: As it is in most cases, a change in the status quo brings with it both challenge and opportunity. IMG has been providing best of class medical insurance solutions for marine crew members for more than 20 years and is particularly well suited to respond these changes. The MLC sets minimum standards of responsibility for vessel owners to provide, among other things, access to medical care for injuries and illnesses that arise as a course of the crewmemberâ&#x20AC;&#x2122;s service aboard ship. IMGâ&#x20AC;&#x2122;s expertise in the design and administration of this specialized coverage and understanding of the unique needs and challenges of the marine culture allow us to work in harmony with the industry to make compliance with these requirements simple and cost effective. SUSAN LANDERS: The MLC is a global set of laws put in place to ensure shipping companies provide a uniform minimum level of labour standards and protection for employees and their families. The MLC is already in force in many countries including Cyprus, Denmark, France, Netherlands, Norway, Spain and Sweden, with the UK, Germany and Belgium set to implement the Convention in 2014. The convention is a positive step for the industry, as it ensures that shipping companies provide comprehensive rights and protection to the worldâ&#x20AC;&#x2122;s 1.2 million seafarers and their families. Although the MLC sets out minimum global standards, insurers can provide specialised products for the maritime sector, where appropriate, that meet or exceed the requirements of the MLC, helping employers to differentiate themselves in this highly competitive labour market. l

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Maritime Labour Convention 2006 Executive Round Table Business Forum

WHAT INSURANCE PLAN DO YOU PROVIDE FOR THE MARITIME AND MARINE INDUSTRY?

PHILIP WRIGHT: MLC 2006 came into force August 2013. In anticipation we had already commenced discussion with the International Transport, the Insurance Industry, InterManager and a number of ship owners with the specific intention of providing a seamless insurance policy that will fill the gaps that the traditional Insurance Market cannot. The intention: to combine these hitherto uninsured risks within a policy that also embodies the everyday risks of life at sea, through medical insurance and personal accident. Crewsure is a bespoke insurance policy specifically designed to respond to the requirements of MLC 2006. Not only do we insure healthcare and personal accident, but we also extend our cover to include previously uninsured risks such as unpaid wages and repatriation following abandonment. The development of Crewsure has been, and will remain evolutionary. This is because some areas of the Maritime Labour Convention will further develop over time, from country to country, based on ILO guidelines. Currently Crewsure is specifically designed to provide insurance cover for: Medical Benefits; Personal Accident; Loss or delay in delivery of baggage & personal possessions; l Repatriation following abandonment. l l l

Health cover: Your crew are covered for medically necessary treatment due to accidents or illnesses under a managed healthcare plan for up to USD 500,000 per

person per insurance year, however, this limit can be amended if required. Preexisting conditions are covered. Personal accident: Cover for permanent disability from an accident. Up to USD 100,000 for crew and USD150,000 for junior officers and USD175,000 for senior officers. l

Accidental death: We provide up to USD 94, 000 per person plus there we will also pay for each legally dependent child under the age of eighteen at the time of death, USD 18, 400 per child up to a maximum of 4 children.

Baggage: Cover for lost or delayed baggage prior to departure and on return home up to USD 1,000 for a single item or a maximum of USD 2,500 in any twelve month period.

Abandonment: An insured person is covered for the cost of repatriation to their home country in the event that they and their vessel are abandoned leaving the vessel without the necessary maintenance and support. Abandonment including loss of wages can be purchased as a standalone product.

Although the Crewsure insurance product has been designed as a single solution, should a ship owner have sourced elements elsewhere, the product can be separated as appropriate. Crewsure insurances are underwritten by Globality Health and KA Kรถln. Assekuranz Agentur GmbH on behalf of Great Lakes Reinsurance Company - both part of Munich Re.

PHILIP CATTERTON: MarineSure is the water tight health insurance plan that protects sea farers on and offshore from certain circumstances that may arise as a result of the unique lifestyle marine professionals face. The MarineSure health insurance plan is primary health cover not subordinate to your vessel’s insurance in regards to medical cover. Your health cover and service stay where it should - with an experienced medical insurance provider. If one of the crew have been signed off your ship by a physician in order to obtain medical treatment and as a result are unable to rejoin the vessel there is a benefit to either rejoin vessel at next port of call or return to crew member’s country of residence. If a crew member undergoes a long period of convalescence, we can provide with Home Country cover for up to 12 months to get your crew back doing what they like to do best. MarineSure offers your staff full protection worldwide with a composite rate cover based on the vessel’s itinerary. It means that if your crew requires cover in Geo Cover 1 but is based there only 40% of the time, you will only be charged for Cover 1 for the time present. TODD HANCOCK: IMG offers a full portfolio of both short

and long term, group and individual international medical insurance plans to address the coverage needs of crewmembers all with the security of an ‘A’ rated insurer. Moreover, as disability insurance is also a component of the MLC requirement, IMG offers this short term disability benefit coverage, as well as available permanent total disability cover for the marine industry. SUSAN LANDERS: Allianz Worldwide Care took a proactive approach to creating an on-shore healthcare plan which addresses all of the MLC 2006 mandatory inpatient and out-patient medical requirements, and also offering a number of optional inpatient, out-patient and dental benefits. This allows employers to provide a higher level of healthcare cover and more importantly, a more attractive employee benefit in this competitive industry where there is a scarcity of qualified and experienced maritime staff. In addition, our sister company Allianz Global Corporate & Specialty (AGCS) offers a range of marine and shipping industry insurance products, including cover for global cargo (and project cargo), marine hull and machinery and marine liabilities. l

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Maritime Labour Convention 2006 Executive Round Table Business Forum

WHAT OPPORTUNITIES EXIST FOR INSURERS IN THE MARITIME AND MARINE BUSINESS?

PHILIP WRIGHT: Medical claims have traditionally been insured as part of Shipowners’ Liability policies within the P&I Clubs, but, as we said earlier, Shipowners may well come round to the view that by reason of the MLC, they should be looking to provide their staff with Employee Benefits, not least Medical Insurance. PHILIP CATTERTON: That’s actually quite a tough question because there are many niche areas of business within maritime including the charter yacht and cruise liner industry. Also, we could hit another global financial crisis and everything could change. Do also bear in mind the MLC is subject to change and update. It’s also going to take time to play out. There is also the fact that different countries may interpret the MLC differently, or may not enforce it effectively. Only time will tell. Globality makes a great point and I don’t know what the final ramifications of this will be, but I do know it does call into question how best to provide different types of cover to the industry. Recently in Geneva the ILO are talking about long-term-benefits and medical care. This is where we can make great in-roads especially with regards to onshore care over a long period of time.

P and I clubs are fantastic organisations but they are by no means onshore medical specialists. Over time I think this is what will be required. Medical specialists onshore, with people everywhere, supported by professional experience and the best services. Another opportunity is working with P and I Clubs and ship owners on hybrid insurance cover. The P and I club covers offshore needs, the insurer covers onshore needs. It’s hard to design but can deliver the best of both worlds. TODD HANCOCK: The maritime environment offers any number of opportunities to support the insurance needs of the industry. It’s IMG’s perspective that the fundamental keystone to accessing these opportunities is a deep understanding of the industry culture, its challenges, its strengths, its needs and its limitations. Over more than two decades participating with and supporting the marine industry, we think we’ve gained keen insight to these aspects. SUSAN LANDERS: As you can see in the previous question, which are examples from the Allianz Group, the marine and shipping industry offers insurers opportunities across a wide range of insurance products. l

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WHAT CHALLENGES DO INSURANCE COMPANIES FACE IN THE MARINE AND MARITIME INDUSTRY?

the crew’s working days are spent on the high seas with limited communication abilities, minimized access to medical care and often competing pressures to respond to pressing shipboard needs the member’s ability to fully digest the information that corresponds to their benefits and how to access them is often severely impaired. Add to this the compressed timelines to get tasks accomplished while at port and those members need an insuring partner that’s ready, able and willing to assist them through the process. IMG is absolutely a company prepared to do just that and we demonstrate this on a daily basis in our interactions with professional marine crew. SUSAN LANDERS: Insurance for the marine and shipping industry is quite complex as there’s different insurance cover required for many different aspects of the industry. However, one challenge remains the same – the insurer must always be able to provide a level of cover and supporting services which are competitive if it wishes to gain and retain clients. It also has to keep abreast of changes such as the introduction of MLC, to ensure that its plans are appropriate and fully up to date. l

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PHILIP WRIGHT: It is a market that has been the preserve of the P&I Clubs for a century, so it is conservative and traditional. Service will be critical and Companies, such as ours, who have existing relationships in the Marine market, are perhaps better positioned than others. PHILIP CATTERTON: The most important challenge is to look at the business on its own merit. Evaluate it separately. The maritime industry is unique. Sometimes the tendency can be to treat things the same as everything else. This is a mistake. Just because we handle international people all the time, the challenge is not to put it in the same bucket and provide a solution that is needed. Insuring the Maritime and Marine industry is a completely different dynamic than the expatriate market. Claims patterns are different, can be much larger so it’s key to manage these properly, contain costs and deliver the best coordination and communication to your client. This is a very specialist sector of health insurance and to understand it, takes a lot of time and hard work. TODD HANCOCK: The very nature of the maritime and marine industry brings with it numerous challenges. Because so much of

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Maritime Labour Convention 2006 Executive Round Table Business Forum

“In response to the anticipated huge increase in the workload of inspecting and certifying an estimated

40,000 ships, the ILO has literally created a “battalion” of inspectors through training mainly through the M aritime L abour Academy at the International Training Centre in Turin. The ILO has also helped Member States build capacity to carry out the necessary legal work, and created a dedicated MLC, 2006 website, with many tools and resources, including a database for various national reports and other information that is to be submitted to the

ILO’s Director General. Activities

have also

been undertaken in the maritime sector regarding insurance to meet some of key requirements under the

MLC, 2006.

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Cleopatra Doumbia-Henry, Director ILO International Labour Standards Department

| 23 Q1

HOW COMPLEX AN OPERATION IS THE REPATRIATION OF CREW IN THE CASE OF AN INCIDENT? and even the vessel owner all comes in to play. Oftentimes, government intervention is a challenging component. With war zones, geopolitics and piracy issues to contend with the number of moving parts for delivering services, such as an emergency medical evacuation, are all factors that must be accounted for and it takes an experienced and knowledgeable staff to respond in a crisis. SUSAN LANDERS: The employer is responsible for the safe transfer of their workers to shore and our medical evacuation/ repatriation cover and assistance service is effective once the insured member reaches land. A clearly def ined evacuation/repatriation process is in place from notification to plan initiation and completion. Our Evacuation Team closely monitors the progress of the evacuation/ repatriation throughout and provides regular and timely updates to the member, the hospital and doctors, and any appointed representative(s). l

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P H I L I P W R I G H T: Unfortunately it is not an unusual occurrence to repatriate crew. It is only a complex operation if you do not have a suitable worldwide assistance provider network in place. Crewsure provides seafarers access to the Specialty Group global network. Specialty has a global network enabling delivery of assistance throughout the world in local languages. The service includes 24 hour medical assistance, claims administration and specialist medical repatriation solutions. PHILIP CATTERTON: We utilise the services of the market leader SOS International for our medical assistance, repatriation and evacuation services. They are specialists in Marine Crew assistance services and evacuation needs. Repatriations are standard practice for them. TODD HANCOCK: There is really no simple answer. It depends upon a number of variables; communication ability, geography, weather

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Maritime Labour Convention 2006 Executive Round Table Business Forum

â&#x20AC;&#x153;We could expect a year or two of some uncertainty and possible confusion especially in connection with

Sate inspections and port State control due to the novelty of the MLC, 2006 regime. However, flag

much of this has been resolved or clarified with remarkable efficiency in many cases. This is due to the fact that a great effort has been made to make sure that the most important actors in the sector have been accurately informed about what the

Convention does and does not address.â&#x20AC;?

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Cleopatra Doumbia-Henry, Director ILO International Labour Standards Department

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IN THE CASE OF A MASS CASUALTY DISASTER, HOW PREPARED IS THE INDUSTRY TO RESPOND?

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PHILIP WRIGHT: Costa Concordia is a good example of a mass casualty and an Industry response. In terms of our response time, we are always-on and ready to respond 24/7 365. PHILIP CATTERTON: We utilise the services of the market leader SOS International for our medical assistance, repatriation and evacuation

services. They are specialists in Marine Crew assistance services and evacuation needs. Repatriations are standard practice for them. TODD HANCOCK: While we wouldnâ&#x20AC;&#x2122;t pretend to speak for the entire international healthcare industry, IMG is certainly scalable and has the personnel and experience to respond. l

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Maritime Labour Convention 2006 Executive Round Table Business Forum

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HOW POPULAR ARE SERVICES LIKE EAP IN THE MARITIME INDUSTRY? They have dif ferent motivational factors than an expat, which in turn throws up dif ferent challenges and requirements. You can’t apply the same rules you would in the global benefits business for onshore workers, as it’s a completely different environment. We see a concentration on the scope of core health benefits covering serious injury and convalescence. The other big focus is how to best provide services to such a mobile, remote and nomadic industry. TODD HANCOCK: Perhaps surprisingly or unsurprisingly our utilization rates for EAP are pretty low. We can only surmise that this may be a cultural issue where accessing Employee Assistance Services may be viewed as a weakness. SUSAN LANDERS: Due to the nature of the population and the geographic dispersal we have seen no evidence of a requirement for Employee Assistance Services amongst our existing or potential maritime clients. l

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PHILIP WRIGHT: With an estimated 1.5 million workers, the Maritime Industry crosses cultural, political and physical borders every day. It should always be remembered that approximately 35% of those at sea are Phillipino and 15% are Indian. For Employee Assistance Programs, popular is perhaps the wrong word. They are critical to the safety and well being of those working at sea. PHILIP CATTERTON: Employee assistance services are an excellent solution for overseas workers and onshore expats, sent on short or long term assignments in far off lands. But it’s a little different in Maritime. No one sends you there. We see a work force that want to be there and love what they do. So we have to look at it differently, because it’s a completely different situation. We find the type of people that work in the maritime industry have a very different makeup than onshore workers.

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Maritime Labour Convention 2006 Executive Round Table Business Forum

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HOW CAN MARITIME INSURANCE PLANS ASSIST IN THE FIGHT AGAINST PIRACY?

individual coverage for specific and limited traverse through high risk areas, IMG has the capacity and resources to offer solutions. SUSAN LANDERS: Each client company should carry out an individual risk assessment and ensure that robust risk management practices are in place. This is the responsibility of the ship owners, who need to follow and understand international guidelines to help protect against piracy. Maritime insurance providers can consult with ship owners and share garnered information and experiences in support of their efforts, but the onus is on the companies involved to understand local laws and follow international best practices. l

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PHILIP WRIGHT: K&R plans have helped in the fight against piracy. Incident numbers are well down off the East coast of Africa, although unfortunately piracy is far from eradicated. PHILIP CAT TERTON: Governments are making excellent progress combating piracy and the media can make it appear worse than it is. There are many excellent Kidnap and ransom plans out there covering Piracy concerns. TODD HANCOCK: IMG is prepared to respond to these issues by working closely with our insurance markets to provide bespoke solutions when appropriate. Whether through the use of special endorsements, excess coverage limits or complementary,

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Maritime Labour Convention 2006 Executive Round Table Business Forum

WHAT IS IMPORTANT WHEN DESIGNING MARITIME AND MARINE HEALTH INSURANCE PLANS?

PHILIP WRIGHT: That they actually respond to the particular needs of the maritime Industry. You can’t force seafarers into an insurance policy they don’t need. As mentioned earlier, Crewsure is a bespoke insurance policy specifically designed to respond to the requirements of MLC 2006. This is important to stress and remember as there are some plans sold today, that do not provide the right coverage, but are marketed as “MLC compliant” plans. As such a standard does not exist this clearly needs further discussion in order to ensure sea farers may access the care and assistance they are entitled to, under the MLC 2006. PHILIP CATTERTON: It is really important to understand that providing offshore and onshore health insurance cover and services to the maritime industry, is worlds apart from managing the life cycle of an American expat living in Beijing. Service delivery is more intensive and simple day-to-day elements like client communications can be limited. Our core strength means we do not design one solution for everything, but tackle each scenario separately. We do that very well. That’s the way for us: to approach different sectors individually. With that in mind when we consider the type of person that may work on a cruise liner or charter yacht. Generally speaking these are very active, healthy people. They like to work, and when on board, all they do is work. We see that they tend not to get sick, aren’t unmotivated, but when they do get injured, they do it pretty well. We also look at the nomadic nature of the

maritime industry and how that may affect communications. There may be a large number of people on board the vessel, satellite coverage may be expensive and limited plus the window for communications may be much smaller. This in turn affects how you deliver services under the health plan, all communications and coordination Bearing these facts in mind, to design the plan right, you have to cover the core components. We worked with leading marine experts when we designed MarineSure. We took a step back and looked at what happens in various situations and how best to cover those risks. This led to adapting the insurance plan, service delivery and systems, believing that one size does not fit all. TODD HANCOCK: Clearly it is making certain, throughout the course of service and plan design & development, that we properly access and create an offering that fits the need(s) involved. Again, this goes back to culture and our ability to understand both the overarching issue and the nuances involved in the implementation and administration. Also, IMG knows it is important to understand the goal of the buyer involved. For example, is it to simply comply with regulation or is it the desire to attract and retain qualified marinecrew? The same coverage isn’t necessarily right for every customer. SUSAN LANDERS: It is vital that we understand the fundamental needs of the individuals we are insuring so that we can design a suitable plan and our Marine Plan is a good example. In this case, it was also necessary

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to factor in the requirements of Maritime additional benefits, as we know that our Labour Convention 2006 to ensure that our shipping clients face a competitive onshore cover was fully compliant. However labour market. l we also provided the option to provide

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Maritime Labour Convention 2006 Executive Round Table Business Forum

“In addition to the Guidelines that the ILO adopted between 2006 and 2013 explaining the Convention and its implementation in connection with flag State and port State ship inspections and medical examinations as well as guidance regarding model provisions for legal implementation, an ILO tripartite meeting of experts has also recently adopted ground-

breaking guidelines for the training of ships’ cooks, covering everything from training and responsibilities of ships cooks to food handling, provision of food without charge to seafarers as well as minimum standards for the amount and quality of food and drinking water on board ships. Also, the international representative organizations for seafarers and for

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ship owners, the International Transport Workers’

Federation (ITF) and the International Shipping Federation (ISF), respectively, have issued their own important guidelines on implementing the MLC, 2006 and what it means for ship owners and seafarers. Social networks have also sprung up, providing instant sharing of information on issues related to the Convention. And of course, inspections are underway, and actions are being taken in many

ports to make sure the MLC, 2006’s provisions are

being respected, and that action is then taken on board ships to correct problems.”

Cleopatra Doumbia-Henry, Director ILO International Labour Standards Department

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Q10

HOW WILL THE MARITIME AND MARINE INDUSTRY DEVELOP OVER THE NEXT 5 YEARS?

will be very interesting to see how they enforce the medical and health side of the Maritime Labour Convention. A lot will depend on how well the MLC is implemented and policed. That will be an interesting part, to the commitment of the countries, that laws are followed. If that happens we will see a lot of changes. If it doesn’t we will go back to status quo. TODD HANCOCK: Oversight by maritime organizations dedicated to improving the working conditions and benefits for those working aboard seagoing vessels will continue to grow. It is up to insurance/service organizations like IMG to continue to work in concert with the industry and be prepared to respond with high quality insurance benefits and services crafted to specifically respond to the needs, challenges and concerns of the maritime and marine industry. SUSAN LANDERS: All industries evolve, and as insurers it’s our responsibility to respond to these developments and changes. At Allianz Worldwide Care we monitor this so that we can respond accordingly, as per the launch of our MLC compliant onshore healthcare plan. l

Roundtable

PHILIP WRIGHT: Historically the Industry has continued to grow, although always evolving. China is a major maritime nation today and continues to grow. The Industry will likewise need to continue to evolve to meet the ever changing needs, such as those now introduced by MLC 2006. Such frameworks will continue to develop and require insurers to innovate in plan design around policy change. PHILIP CATTERTON: This will be the interesting part, to see how it plays out. I think the results of the MLC are yet to be seen. It’s going to take time to develop. Probably 3-5 years to see any real affects. The MLC covers many elements of shipping trade and employment, and it will take time for this to trickle down through the system. For us it’s a long term market focus. In 5 years you may see a consolidation of products. Some insurers may not be providing such plans in 5 years.It’s a very closed, demanding industry to provide cover to. The MLC is also subject to update, as we have just seen in Geneva. Then you have the fact it is up to each individual country to implement the MLC based on how they interpret it, and then to police it. It certainly

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NEW COVER FOR THE UNTAPPED SEAFARERS MARKET FROM GLOBALITY HEALTH 8 Crewsure Marine is a composite ‘no fault’ insurance policy, paid for by the Employer,

providing personal insurance for seafarers.

Philip Wright, Chief Commercial Officer, Globality Health commented, “It is our firm belief that the best partners have joined forces to deliver first class care and the best insurance service to the maritime industry. We give Crewsure clients the strength of one of the world’s leading insurers and reinsurers, so crewmembers can feel safe and secure whatever ocean they cross.” Robert Johnston, Crewsure Marine said, “Crewsure will work harmoniously with the maritime industry to give seafarers the security and benefits they deserve. Crucially, we engage with unions, shipowners, ship managers, manning agents and the insurance industry and will continue to do so to ensure that Crewsure remains evolutionary.” Crewsure Marine is underwritten by Globality Health and KA Köln.Assekuranz Agentur GmbH on behalf of Great Lakes Reinsurance PLC both part of Munich Re. l

Health insurance News

Globality Health responded to the need for appropriate insurance for seafarers by partnering with Crewsure (crewsure.com) to offer clients innovative insurance products. From August 20th 2013 all vessels over a certain size have to comply with a new labour convention known as the Maritime Labour Convention (MLC) 2006. New product, Crewsure Marine, supports the health and wellbeing of onboard crew and also fully meets the revised Maritime Labour Convention (MLC) regulations. Crewsure Marine is a composite ‘no fault’ insurance policy, paid for by the Employer, providing personal insurance for seafarers. This includes medical care, personal accident cover, loss or delay of baggage and repatriation in the case of abandonment. Although the Crewsure product has been designed as a single solution, should a ship owner have sourced elements elsewhere the product can be separated as appropriate.

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Maritime Labour Convention 2006 Executive Round Table Business Forum

Roundtable

IPMI MAGAZINE SPEAKS WITH What is your organisations role in officially come into force for the UK 12 implementing the Labour Convention months after that date, ie., 7 August 2014. 2006? However, most of the provisions of the MLC will be mandatory in the UK prior to We are the Maritime and Coastguard Agency that, as some are already in UK law, and (MCA), an executive agency of the Department others will be contained in implementing for Transport (DfT). legislation which will come into force before We have developed the policy and 7 August, or has already come into force. legislation on the transposition of the International Labour Organisationâ&#x20AC;&#x2122;s Maritime What are some of the milestones youâ&#x20AC;&#x2122;ve Labour Convention, 2006 (MLC) into UK seen since the Maritime Labour Convention domestic law, for approval by the relevant 2006 came into force? government Minister. The MCA is also the competent authority The certification of UK ships against the for flag state and port state responsibilities Convention is well underway. Inspections for survey, certification and inspection of are beginning on vessels which are below ships for compliance with the MLC. the threshold for requiring a certificate. Some foreign registered ships have been What is the current state of the Maritime detained in ports abroad for non-compliance Labour Convention 2006? with the MLC. Seafarer Recruitment and Placement The MLC came into force internationally on Services which are not already compliant 20 August 2013. The UK ratified the Convention are rushing to become compliant. on 7 August 2013, and it will therefore

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A1.4.5(c)(vi) to have a System of Protection to cover seafarersâ&#x20AC;&#x2122; monetary loss resulting from failure of the RPS or the shipowner to meet their obligations to them. The first ILO MLC Special Tripartite Committee took place April 2014, and considered the first batch of MLC amendments. Proposed amendments under discussion include the broadening of the coverage of financial security obligations in the areas of wages and other entitlements. What else has been done as part of the implementation process, both before and after the Convention came into force? MCA surveyors have been trained in the MLC to prepare them for carrying out MLC inspections. The MCA has also carried out public Consultations on proposed regulations transposing the requirements of the MLC. The MCA has run several seminars for shipowners and other interested parties to inform them about the MLC.

Roundtable

Implementation of the Convention is enhancing the rights of seafarers to receive medical treatment both onboard and ashore. Many (mutual) P&I Clubs have been amending their rules to accommodate the shipowner financial security obligations relating to repatriation (under MLC Regulation 2.5.2) and compensation for death and long term disability resulting from occupational illness, injury or hazard (under MLC Standard 4.2). Not all vessels which are subject to the MLC have P&I cover, and of the ones which do, it may be that some will be covered by P&I Clubs which have not altered their Rules in the way described above to accommodate the MLC obligations. We understand that some mainstream insurance companies have also been developing products to address the financial security requirements in Titles 2.5 and 4.2. Also one or two companies have been developing products which seek to address the obligations placed on seafarer Recruitment and Placement Services by MLC Standard

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Maritime Labour Convention 2006 Executive Round Table Business Forum

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How widespread has ratification been, and are there any remaining gaps that need to be filled? At the time of writing, there have been 56 ratifications registered with the ILO in Geneva. Most of the major players are in this number, and more ratifications are expected. From time to time, there are flag State which extend their ratifications to dependencies and overseas territories which are not sovereign states of themselves. Examples of this include the UK extension of ratification to the Isle of Man, Gibraltar and the Cayman Islands. What impact will the Maritime Labour Convention have on world trade?

Due to widespread ratification and the “no more favourable treatment” rule contained in the MLC, it will be very difficult for ships registered in countries which have not ratified the MLC to trade without delay in ports of ratifying countries. This is because the rule requires Convention standards to be applied to ships from nonratifying countries as well as ratifying ones. Ships which are registered with ratifying states and have been issued with MLC certificates by those states will be able to use the certificates as prima facie evidence of MLC compliance when visiting foreign ports. They will only be subjected to in-depth inspections if the surveyor has clear grounds to believe conditions on board are not compliant with the Convention, or a complaint have been received. Ships which do not hold such certificates because they are registered in non-ratifying states are more likely to be subjected to indepth maritime labour inspections, which have the potential to delay the vessel, and, in addition to the “hassle factor”, this can result in additional costs. l

Roundtable

We also publish as much information as we can on government websites to assist shipowners and others to achieve compliance with the Convention. Some guidance has to be provisional, and subject to change, because much of the legislation has yet to be approved by the UK parliament.

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CLAIMS ARISING FROM MARITIME EMERGENCIES CAN BE News

HUGE

More than two years after the grounding of the Costa Concordia, which resulted in the death of 32 passengers and crew, the total loss figure is approaching $2bn – making it one of the largest marine casualties ever. As of the time of writing, the authorities have yet to figure out what will happen to the wreck of the vessel. It is only natural that cruise ship disasters dominate the headlines, particularly when such a tragic loss of life is involved, but such incidents are not the only potential casualties that the maritime industry has to worry about. According to the world shipping council about $4trn worth of goods is transported on the world’s oceans every year. This cargo is shipped by vessels such as container ships and tankers that are ever-increasing in terms of size, as shipowners strive to reduce operating and shipping costs through greater economies of scale. An example of this is the introduction last year of the Maersk Triple E generation cargo ships – the Triple E refers to Economy of scale,

Energy efficiency and Environmentallyimproved – which are the largest container vessels in the world, measuring 400 meters in length and carrying more than 18,000 teu (twenty foot equivalent unit). Four hundred meters in length is equivalent to the combined size of two basketball fields, two football fields and two ice hockey rinks. Such vessels are so large that they exceed the capacity of the Panama Canal and the depth of many ports. For example, there are no ports in either North or South America which can handle the deeper drafts or they exceed the capacity of some of the traditional container cranes. And should one of these supersized container vessels be unlucky enough to be involved in a significant incident at sea – as the Costa Concordia grounding has demonstrated – the salvage operation to remove the wreck can be increasingly complex and technically challenging. The ever-increasing size of ships, containers and cruise ships, means that costs for

$4trn worth of goods is transported on the world’s oceans every year

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Tim Donney, Global Head of Marine Risk Consulting, AGCS warns, “The claims arising out of maritime emergencies of these ‘mega ships’ can be huge. For example, just think of the business interruption of ports and terminals if an accident were to block a port entrance or even one of the canals. Depending on the specific circumstances of the situation, salvage might require unprecedented efforts and complex operations – in some cases it may take many months, or possibly a year or longer, to remove all the containers from such vessels, particularly if the accident were to happen in a remote location, where all salvage operations are only able to operate seasonally.”

ut how should the maritime industry deal with the increasing risks and costs of salvage operations?

According to Paul Warren, Senior Claims Expert in London at AGCS, it needs to come together in drafting more binding standards and having solutions more readily available when another incident involving a large container ship happens. “We need a concerted effort to deal with

this issue,” he tells Global Risk Dialogue. An example for such an industry-wide initiative is the Marine Spill Response Corporation (MSRC) in the US, a not-for profit operation that works on behalf of the petroleum, transportation and energy industries. MSRC was formed in the aftermath of the Exxon Valdez accident in 1989 to offer oil spill response services and mitigate damage to the environment. If the industry comes together in a similar vein for salvage operations this will enable the right kind of equipment to be more readily available in strategic locations, as well being much more cost-effective. As Donney explains, “Usually this kind of heavy salvaging equipment, cranes and derrick barges are owned by marine contractors. They use it primarily for construction purposes, so the issue is often availability – it’s crucial for us to keep maritime salvage requirements in mind.” l

Roundtable

any salvage operation increase exponentially due to the need for different, sometimes more customized equipment, more specialized personnel and expertise, as well as heightened environmental requirements. Escalating costs around salvaging and wreck removal have an effect on rates and deductibles for both hull and cargo insurance. An example would be the container ship, Rena which grounded off the coast of New Zealand in 2011.

International Labour Organization have taken concrete steps to protect abandoned seafarers

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NEW MEASURES TO PROTECT SEAFARERS FROM ABANDONMENT developed over nearly a decade by a Joint Working Group established by the ILO and the International Maritime Organization (IMO) in 1998 and will strengthen the 2006 Convention. They establish mandatory requirements that shipowners have financial security to cover abandonment, as well as death or longterm disability of seafarers due to occupational injury and hazard. “These legal standards will provide relief and peace of mind to abandoned seafarers and their families wherever they may be,” said Cleopatra Doumbia-Henry, Director of the ILO Labour Standards Department. “In addition, by adopting these amendments to the Convention, shipowners and governments are also strengthening its provisions aimed at ensuring a level-playing field for quality shipping around the world.” Under the new provisions, ships will be required to carry certificates or other documents to establish that financial security exists to protect seafarers working on board. Failure to provide this protection may mean that a ship can be detained in a port. The ILO Maritime Labour Convention, 2006 came into force on 20 August 2013. To date, 57 ILO Member States representing more than 80 per cent of the world’s global shipping tonnage have ratified the Convention. As of March 2014, the ILO’s Abandonment of Seafarers Database listed 159 abandoned merchant ships, some dating back to 2006 and still unresolved. l

News

More than 300 representatives of seafarers, shipowners and governments, meeting at the International Labour Organization (ILO), have taken concrete steps to protect abandoned seafarers and provide financial security for compensation in cases of death and longterm disability due to occupational injury or hazard. The new measures are also aimed at improving the world’s shipping industry. “The adoption of the Maritime Labour Convention in 2006 was an historical milestone that heralded a new era in the maritime sector,” said ILO Director-General Guy Ryder. “This latest step, building on international tripartite cooperation, is a very significant and inspiring example for other economic sectors. When they come into force, these measures will ensure the welfare of the world’s seafarers and their families if the seafarers are abandoned, or if death or longterm disability occurs as the result of occupational injury, illness or hazard. These steps will certainly help improve working and living conditions for seafarers, doing what is right for the women and men in this sector who play a central role in keeping the real economy going with some 90 per cent of world trade carried on ships.” The measures come in the form of amendments to the ILO’s Maritime Labour Convention, 2006, which were adopted without opposition. They will now be sent to the ILO’s International Labour Conference in May for approval. The amendments were

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News

SHIPPING LOSSES DECLINE, EMERGING RISKS POSE SERIOUS CHALLENGES TO MARINE INDUSTRY AND INSURERS Shipping losses continued their downward trend with 94 losses reported worldwide in 2013, coming in below 100 for only the second time in 12 years. Losses declined by 20 percent from 2012 when there were 117 reported losses. The 2013 accident year also represents a significant improvement on the previous 10-year loss average with total worldwide shipping losses declining 45 percent since 2003. “More than 90 percent of global trade is carried by sea so the safety of international shipping vessels and routes is critical to the health of the global economy,” said Tim Donney, Global Head of Marine Risk Consulting. “While the long-term downward trend in shipping losses is encouraging, there is more work to be done to improve the overall safety of these vessels as well as their cargo, crew and passengers, especially in Asian waters. As an insurer we are always concerned about recognized issues such as training and safety management, - human error is not something we can ignore and lack of skilled workforce

is still an issue - but we also need to be alert for new risks as the industry continues to develop.” Asia saw highest number of marine losses and continues to be an area of focus According to the report, more than a third of 2013’s total losses were concentrated in two maritime regions. As in 2012, the South China, Indo China, Indonesia and the Philippines region saw the highest number of losses (18 ships), closely followed by the seas around Japan, Korea and North China (17 ships). More than two years after the Costa Concordia disaster, improving passenger ship safety continues to be a priority, with 2014 likely to see the 100th loss of a passenger vessel since 2002. Asia remains a hotspot for passenger shipping losses, especially for smaller passenger vessels and ferries as demonstrated by the sinking of the ferry St. Thomas of Aquinas as a result of a collision with another vessel off Cebu in the Philippines in August 2013, with the loss of at least 116 lives.

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2012, the South China, Indo China, Indonesia and the Philippines region saw the highest number of losses

which was a significant increase from both 2012 (47 percent) and the previous 10-year average (44 percent). For the first time the report includes not only total losses but also the total number of shipping casualties by region. The East Mediterranean and Black Sea region is shown to be a casualty hotspot, responsible for 464 casualties (18%) out of a worldwide total of 2,596 during 2013, including the year’s oldest ship to be a total loss: l the 108 year old Hantallar which grounded off Tekirdag, Turkey. This region combines busy shipping routes and a reputation for weaker safety management practices with a regional fleet that has a higher proportion of lower quality older vessels. The report also shows that over the past decade the British Isles have been the location of the most casualties, while January is the worst month for all casualties (including total losses) in the Northern Hemisphere. In the Southern Hemisphere it is July. Piracy attacks still a concern – different models

News

“We have to ask how some Asian ship operators measure safety and quality, particularly when speaking about domestic trade shipping in South East Asia,” said Captain Jarek Klimczak, Senior Marine Risk Consultant at AGCS. “The understanding of quality and standards can sometimes appear 50 years behind Europe – maybe even more.” Around the world, more than a third of the vessels lost were cargo ships with fishery and bulk carriers the only other type of vessels to record double-digit losses. The total loss of two bulk carriers in Asian waters in 2013, Harita Bauxite and Trans Summer, highlighted the importance of proper cargo handling and stowage of bulk cargoes. AGCS experts believe high moisture content and subsequent liquidization, leading to free flowing instabilization of the cargo to be the primary cause of the accidents. The most common cause of losses in the past year was foundering (sinking or submerging), often driven by heavy driven by heavy weather, accounting for almost 75 percent of all losses,

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Shipping Losses Decline, Emerging Risks Pose Serious Challenges To Marine Industry And Insurers

Vessel size: Last year marked the arrival of the largest container vessel on record, over 400 meters long and boasting capacity in excess of 18,000 teu. This trend is set to continue. AGCS estimates capacity grows by around 30 per cent every four to five years, meaning the arrival of 24,000 teu carriers can be anticipated around 2018. l

“The claims arising out of maritime emergencies of these ‘mega ships’ can be

huge. For example, just think of the business interruption of ports and terminals if an accident was to block the entrance,” said Dr. Sven Gerhard, Global Product Leader, Hull & Marine Liabilities, AGCS. “In addition, salvage might require unprecedented efforts and complex operations – in some cases it may take many months, or possibly a year or longer, to remove all the containers, particularly if the accident were to happen in a remote location. The large loss potential has increased for events which are not extraordinary on these big ships. And these are unchartered waters for salvors.” Rise of LNG-fueled vessels: Use of liquefied natural gas to power ships is expected to dramatically increase by 2020. There are safety concerns however, as the industry will see the rise of ports that have never previously handled LNG providing bunkering stations. l

“We need to ask what risks LNG-fueled ships will present to the industry. The concern is storing the LNG as fuel and handling it onboard. LNG expertise is not easily available – there needs to be a change in mindset and training,” said Capt. Rahul Khanna, Senior Risk Consultant, Marine, AGCS. Arctic trading routes: Shipping casualties in Arctic Circle waters have increased to an average of 45 per year during 2009-2013 from only 7 during 20022007. Damage to machinery caused a third of these incidents, higher than the average elsewhere, reflecting the harsher operating environment. l

News

pose new challenges In 2013, piracy attacks declined 11 percent to 264 reported incidents worldwide according to International Maritime Bureau statistics - 106 of these occurred in Indonesia, which has seen a 700 percent increase in attacks since 2009. Most of these attacks remain low level opportunistic thefts carried out by small bands of individuals but one third of incidents in these waters were reported in the last quarter of 2013, and there is potential for such attacks to escalate into a more organized piracy model unless they are controlled. An emerging piracy hotspot with more organized crime is the Gulf of Guinea with 48 incidents in 2013, accounting for 18 percent of all attacks worldwide. Piracy attacks in Somalia have declined dramatically with only seven incidents in 2013 compared with 160 attacks in 2011. The report suggests the piracy model could be broken in Somalia in a couple of years if naval patrols continue. An increasingly difficult operating climate for ship operators has forced a number of innovations, including larger ship sizes to capitalize on economies of scale, the use of alternative fuels and changes in ship designs. At the same time, more economical trading routes are fast appearing in Arctic regions during the summer months, but these present their own set of challenges.

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The MLC, 2006 constitutes the fourth pillar of the international maritime legal regime

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REPUBLIC OF THE CONGO RATIFIES THE MLC 2006 to which all persons are entitled, special protection and social rights. Oil exploitation, traditional and commercial fishing, maritime professions and auxiliary professions in maritime transport constitute without doubt major sources of employment and employers of sea and shore personnel.” Guy Ryder, Director-General ILO said, “I am particularly happy to see another African country joining the global effort to promote decent working and living conditions for seafarers. By ratifying the MLC, 2006, the Republic of the Congo demonstrates the commitment of its Government and social partners to support international standards, improve working and living conditions of seafarers and to promote a level playing field for shipowners. I hope that the ratification of the MLC, 2006 will stimulate the country’s maritime industry as a potential source of employment, especially following the inauguration on 9 December 2011 of a highly modern training centre for seafarers at the autonomous port of Pointe-Noire.”

News

Republic of the Congo is the 57th member State of the ILO, and the ninth African state after Liberia, Gabon, Benin, Togo, Morocco, Nigeria, Ghana and South Africa – to have ratified the MLC, 2006. The country has a commercial fleet of 5,846 gross tons. The MLC, 2006 constitutes the fourth pillar of the international maritime legal regime together with the basic conventions of the International Maritime Organization (IMO) which establish international standards on the training and certification of seafarers, on safety and security at sea and on the prevention of pollution from ships. Mr Martin Parfait Aimé COUSSOUDMAVOUNGOU, Minister in charge of the Merchant Marine stated, “The Republic of the Congo is a coastal state with 170 km of coastline. Its autonomous port of PointeNoire serves the entire West and Central African sub-regions. The MLC, 2006 is of major importance because it guarantees the right to decent work for all seafarers. They must enjoy fundamental freedom and rights

As of March 2014, the ILO’s Abandonment of Seafarers Database listed 159 abandoned merchant ships

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ILO AND MARITIME SECTOR ADDRESS ABANDONMENT OF SEAFARERS AND SHIPOWNERS’ LIABILITY the provision of financial security to better protect seafarers from the consequences of abandonment in foreign ports and to address the MLC, 2006 requirements that ship owners provide financial security for compensation in the event of death or long-term disability due to occupational injury, illness or hazard. Seafarers are frequently exposed to difficult working conditions and particular occupational risks. Working far from home, they are vulnerable to potential abandonment in foreign ports when ship owners are no longer fulfilling their responsibilities. If these amendments are adopted by the Committee and successfully meet the other conditions for entry into force, they will mark the first time in maritime history that the plight of abandoned seafarers and the provision of financial security for seafarers’ claims have been addressed in binding international law. The MLC, 2006 was adopted at a Maritime session of the International Labour Conference in 2006. l

News

The world’s leading maritime nations and representatives of ship owners and seafarers, recently addressed the issues of abandonment of seafarers and the rapid settlement of claims for compensation in the case of a seafarer’s death or long-term disability. The first meeting of a Special Tripartite Committee established under the ILO’s Maritime Labour Convention, 2006 (MLC, 2006) saw over 300 maritime representatives gather at the ILO to consider the two key proposals jointly submitted by the international representatives of ship owners and seafarers to amend the Code (Standards and Guidelines) of the MLC, 2006. As of March 2014, the ILO’s Abandonment of Seafarers Database listed 159 abandoned merchant ships, some dating back to 2006 with abandonment cases still unresolved. Many abandoned seafarers are aboard ships without pay, often for several months, and lack regular food supplies, medical care or means to return home. The proposals for amendments concern

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