Special Clause for the Maritime Labour Convention 2006

18 November 2016 No.16-014

Reference is made to the circular No.16-013 dated 12 October 2016 on the Maritime Labour Convention 2006 as amended (MLC). 

The amendments to the Maritime Labour Convention 2006 will enter into force on 18 January 2017.  As discussed in the above circular, in accordance with the entry into force, a special clause entitled the “Maritime Labour Convention Extension Clause 2016” (MLC Extension”) will be introduced into our Club Rules and applied to the insurance contracts of all vessels with effect from 18 January 2017.  The text of the “MLC Extension” appears in the Annex to this circular.


According to the “MLC Extension”, the Association is able to provide Certificates[1] confirming that the financial security requirements of the MLC are satisfied. The “MLC Extension” provides that the Association will make direct payments to seafarers when they advance claims against the Association which fall within the scope of the MLC Regulations and Standards specified in the Certificates. The “MLC Extension” also provides that if such payments fall outside the scope of standard cover, Members will be obliged to reimburse the Association.  


All International Group Clubs will introduce a clause with similar effect. 


[1]Certificates issued by an insurer or other financial security provider confirming that insurance or other financial security is in place for liabilities in respect of


- outstanding wages and repatriation of seafarers together with incidental costs and expenses in accordance with MLC Regulation 2.5.2, Standard A2.5.2 and Guideline B2.5, and 

- compensation for death or long-term disability in accordance with Regulation 4.2, Standard A4.2.1 and Guideline B4.2.