Willis Group Holdings has launched a new liability insurance policy to cover the costs associated with repatriating stranded seafarers.
The Maritime Labor Convention, 2006 (MLC) which came into force on August 20, states that flag states are responsible for repatriating seafarers back to their home country when a ship is abandoned.
According to the International Labor Organization’s (ILO) database, there are currently 184 reported incidents of abandoned vessels and seafarers around the world. As a result of the economic downturn’s impact on global shipping a record number of vessels – and crews – were abandoned in 2009 and 2010, according to The Mission to Seafarers, the world’s largest charitable port based welfare service.
Offered in association with Lodestar Marine Limited and The Mission to Seafarers the new Flag Liability Insurance Against Exposure for Repatriation (FLIER) policy provides:
- Coverage for legal liabilities relating to repatriation and medical costs following an abandonment (due to insolvency), which flag states inherit as a result of the MLC
- Abandoned seafarers with access to expert advice and services – including medical aid, logistical assistance, wages, provisions and supplies – in partnership with The Mission to Seafarers and Lodestar.
A contribution from every policy sold by Willis will go towards funding The Mission to Seafarers’ humanitarian efforts.
“The typical costs of repatriating abandoned seafarers could be in the region of hundreds of thousands of dollars. If any members of the crew have severe injuries then the costs could be considerably more,” said David Purdy, executive director in Willis’ Financial and Executive Risks Practice.
FLIER offers $5 million to $10 million of capacity, provided by Liberty Mutual Insurance Europe Limited.
The MLC provides rights and protection at work for the world’s more than 1.3 million seafarers and is supported by the ILO as well as governments and the international community.
Mission to Seafarers is a registered charity that offers emergency assistance, support, and a welcome to crews visiting over 260 ports around the world in 71 countries.
Lodestar Marine Limited was founded in 2011 to provide fixed premium protection and indemnity insurance options for the shipping world.