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The amendments to the FAQ are intended to provide clarity although uncertainty remains on some aspects of the financial security requirements. It should also be borne in mind that there may be differences in the way states implement and enforce the amendments to the MLC.

Ships that are subject to the MLC must 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 for up to four months contractually entitled arrears of wages and entitlements following abandonment. A further certificate will be required for liabilities for contractual claims arising from seafarer personal injury, disability or death.

P&I Clubs provide the necessary certification on the terms set out in the MLC Extension Clause.

You can find the International Group of P&I Clubs’ updated FAQs on our Maritime Labour Convention 2006 webpage.