1 The Maritime and Port Authority of Singapore (MPA) has published information on requirements to provide compulsory financial security under Section 34A of the Merchant Shipping (Maritime Labour Convention) Act 2014, to meet the requirements of Regulation 2.5 and Regulation 4.2 of the Maritime Labour Convention, 2006, as amended (MLC). The guidance is subsequent to earlier information published on 13 October 2016.
2 Ships as described in Section 3 of the Merchant Shipping (Maritime Labour Convention) Act 2014 (No. 6 of 2014) (MLC ships) will be required, from 18 January 2017, to carry on board certificates attesting that contracts of insurance or other financial security are in place to cover shipowners’ liabilities for
a. outstanding wages and repatriation in accordance with MLC Regulation 2.5, Standard A2.5.2 and Guideline B2.5; and
b. compensation for death or long-term disability in accordance with MLC Regulation 4.2, Standard A4.2 and Guideline B4.2.
3 Where more than one financial security provider provides cover in respect of the MLC ship, the certificates provided by each financial security provider must be carried on board.
4 Shipowners must display copies of such certificates in a visible location on board their MLC ships where it is available to the seafarers.
5 The certificates must be in English and if not in English, must be accompanied by an English translation.
6 The certificates of the contracts of insurance or other financial security may be inspected by port State control officers.
Approved financial security providers
7 Shipowners must obtain the contracts of insurance or other financial security for the abovementioned liabilities only from financial security providers that have been approved by MPA. This list may be revised from time to time. Shipowners who wish to obtain cover from financial security providers not included in this list may approach MPA for approval.
8 The approved financial security provider must issue the shipowner with the certificates of the contracts of insurance or other financial security not later than 7 days after the date on which the contracts of insurance or other financial security are made or renewed.
9 Shipowners must provide copies of the certificates of the contracts of
insurance or other financial security to MPA for MPA’s records. Scanned or electronic copies of such certificates must be submitted to MPA not later than 7 days after the shipowner receives the certificates from the approved financial security provider. Shipowners may wish to
arrange for their approved financial security providers to send copies of such certificates directly to MPA. These certificates do not need to be endorsed by MPA.
10 The contract of insurance or other financial security must not cease before the end of its period of validity unless the approved financial security provider has given at least 30 days’ prior written notice to MPA. In the event of the above, shipowners are advised to promptly provide a plan to MPA on how financial security for their liabilities will continue to be provided for their seafarers. This plan should also be communicated to their seafarers.
11 Shipowners are advised to have their seafarers name in their seafarer’s employment agreement their next of kin, or a representative of the seafarer or designated beneficiary for the purpose of facilitating any claims for the abovementioned liabilities.
Contracts of insurance or other financial security for liabilities relating to compensation for death or long-term disability
12 Shipowners must give at least 30 days’ prior notice to their seafarers before the cancellation or termination of any contract of insurance or other financial security relating to compensation for death or long-term disability.
13 The approved financial security provider must notify MPA in writing of any cancellation or termination of any contract of insurance or other financial security relating to compensation for death or long-term disability within 7 days of such cancellation or termination.
14 A seafarer, or his next of kin, or his representative or designated beneficiary must not be pressured to accept a payment of an amount less than any compensation for death or long-term disability due
to the seafarer.
15 Parties to the payment of the compensation for death or long-term disability must use the Model Receipt and Release Form available from the MPA. Shipowners must provide a copy of the signed form to MPA for MPA’s records. Scanned or electronic copies of such signed forms must be submitted to MPA via email not later than 30 days after the form has been completed.
16 Shipowners that have obtained contracts of insurance or other financial security from an approved financial security provider relating to compensation for death or long-term disability do not need to obtain
separate insurance or other financial security under the Work Injury Compensation Act (Cap. 354).
