Crew

The Club covers liabilities in relation illness, injury or death to crew members which can arise under contract, negligence and/or statutory duty.

Crew contracts of employment will often include provisions for medical care and repatriation in the event of illness or injury, and may also provide an entitlement for a lump sum benefit in the event of injury or death. The Club’s Managers often advise on the terms of crew agreements and contracts of employment and, as with other contractual arrangements entered into by or on behalf of Members which impact upon the Club, liabilities arising under them will not normally be covered by the Club unless those terms have received prior approval by the Managers.

There are numerous collective bargaining agreements in force involving different nationalities of crew member which have been the subject of negotiation between ship owners and the seafarer’s representatives.

The Philippines is the largest supplier of maritime labour and many Filipino crew members are employed upon foreign flag vessels. The employment of Filipino crew members is subject to a standard Contract of Employment, the Philippines Overseas Employment Agreement [POEA], which sets out minimum terms and conditions applicable to the employment of Filipino nationals and includes a scale of no fault contractual benefit in the event of illness, injury or death. The amount of benefit often depends upon the extent of the crew member’s disability and this is usually assessed by a doctor selected and appointed in accordance with the provisions of the contract of employment.

Some flag states have a statutory framework setting out the rights and benefits of seafarers. An example is the Korea Seaman’s Act [KSA] which lays down the benefits payable to Korean crew in the event of their illness, injury or death. The KSA incorporates a table of disability compensation which is the same as the one found in the Korean Industrial Accident Compensation Insurance Act. With regard to death benefits, ship owners who are members of the Korea Ship owners Association have a collective agreement with the Korea Seaman’s Union which provides for extra compensation to be paid, depending on the circumstances of the company. In addition, there are supplementary benefits payable to Korean seamen who work on board non-Korean ships, pursuant to a separate “Regulation Concerning Accident Compensation for Seaman on Board Foreign Ships”.

Repatriation expenses are recoverable from the Club if incurred under statutory obligation following illness or injury to a crewmember or loss of the entered ship. The Club’s local correspondent will have been involved in making the necessary arrangements and will be able to provide the necessary costing details. These costs are not covered if they arise from the termination of the substituted crew member’s contract, sale of the ship, dry docking or the like.

Substitution expenses incurred to replace a crew member who has died or been left ashore as a result of injury, illness, desertion or in any other case in which the Club’s Directors determine the expenses have been reasonably incurred are covered. You will need to account to the Club for the expenses incurred. These costs are not covered if they arise from the termination of the substituted crew members contract of out of any breach of statutory, contractual or collective agreement obligation by the Member.

Claims for shipwreck unemployment indemnity and for a Member's obligation under statute or agreement to reimburse loss of seamen’s essential effects, as defined, are also recoverable.