IGP&I to provide certification and reinsurance for MLC abandonment cover
Source: Asia Insurance Review | Nov 2017
The International Group of Protection and Indemnity Clubs (IG) said they will be providing certification that is required under the Maritime Labour Convention (MLC) and has also arranged reinsurance cover which will provide in total US$200 million MLC abandonment cover.
Since 18 January 2017, ships that are covered by the duties and obligations set out in the International Labour Organisation’s 2006 Maritime Labour Convention, as amended, have been required to maintain financial security for specific liabilities to crew members in the event of their abandonment.
This was discussed at the International Group Correspondents Conference held in London in September. More than 700 correspondents and IG Club managers were gathered for the two-day conference, hosted by the IG every four years, to listen to updates on a range of issues affecting the industry.
Mr Andrew Bardot, Secretary and Executive Officer, International Group of P&I Clubs, commented:
“The provision of Certificates backed up by this particular reinsurance arrangement is a significant move for the IG, and all of our member Clubs, who have worked closely together to develop a means for providing owners with the additional financial cover that they need to meet the latest MLC requirements. The reality is that they would not have been able to do this on the commercial insurance market on the same terms. By developing a solution that spreads both the risk and the cost of these requirements across the global fleet, the IG can provide owners with a commercially viable solution to a regulatory requirement that was needed in order to enhance the welfare of our crew. It is an important step forward for all parties involved.” A