Statutory Alert: Financial security – 2014 amendments to the MLC 2006 Applicability: All shipowners and ship managers
The 2014 amendments to the Maritime Labour Convention (MLC) 2006 are due to come into force on 18 January 2017. The amendments will require the carriage of certificates, or other documentary evidence, of financial security with respect to shipowners’ liability, and repatriation and abandonment.
The International Group of P&I Clubs will provide their members with certificates of financial security that will be valid from 18 January 2017 to 20 February 2018. The International Group is advising members who intend to transfer their P&I cover on 20 February 2017 to ensure they have certificates of financial security in place for the period from 18 January 2017 to 20 February 2017.
Certificates of financial security issued by the International Group will be in the name of the registered shipowner, which may not be the MLC shipowner or DOC holder.
Lloyd’s Register (LR) has no objection to the name of the registered owner being on the certificate. The certificate is clearly issued to the ship, and remains effective as long as the registered owner does not change. LR’s objective (as the inspection body) is to ensure that seafarers are afforded the required protection.
These certificates are not trading certificates and are not subject to IMO requirements (originals or certified true copies). The MLC requires only that the certificate be carried on board and a copy posted. LR would have no objection to certificates being issued in electronic format, as described by the International Group.
It should be noted that some flag administrations may accept insurers other than members of the International Group.