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By selecting Japan flag, you have now set your language to Japanese. This has several benefits, including:

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点击选择 China flag,可将网站语言设置为中文。这能帮助您:

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关闭 点击任意其他国旗,可切换您的语言偏好。

By selecting China flag, you have now set your language to Chinese. This has several benefits, including:

  • Providing quick access to our China page, which collates all our Chinese content in one place.

  • Ensures that content is presented to you in Chinese first, if we have an article, publication or webpage available in Chinese. Look out for the China flag indicators across the site.

Close If you’d like to change your language preferences again, simply click on one of the other flags.

North has merged with Standard Club to form NorthStandard.
Find out more about NorthStandard here or continue on this site to access information and resources.

Maritime Labour Convention 2006 As Amended (MLC) – Liability for Uninsured MLC Liabilities

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CIRCULAR REF: 2018/005

CIRCULATED TO ALL MEMBERS, BROKERS AND DIRECTORS

As Members will be aware from the Club’s Circulars 2016/016 of June 2016 and 2016/024  of October 2016 concerning the implementation of financial certification requirements in accordance with the amendments to the Maritime Labour Convention 2006 (“MLC”), the Boards of all International Group Clubs agreed that Clubs would provide the necessary certification.

The Circulars also made clear however that whilst some of the liabilities arising under the certificates– i.e. compensation for death or long-term disability in accordance with Regulation 4.2., Standard A4.2. and Guideline B4.2. – would be covered by standard P&I cover, the liabilities for outstanding wages and repatriation of seafarers together with incidental costs and expenses in accordance with MLC Regulation 2.5, Standard A2.5.2 and Guideline B2.5 would fall outside of cover. Should the Club be required to meet those liabilities in the first instance under its certificate, Members will be obliged to reimburse the Club.

This position is reflected in the terms of the MLC Extension Clause 2016 against which the Club issues MLC Certificates. The MLC Application Form that Members are required to sign to obtain their Certificates explicitly binds all Co-Assureds, Members and Joint Members to the terms of the MLC Extension Clause and now includes a warranty that the party signing the Application Form has the authority of all those parties to so bind them.

This Circular is therefore intended to remind Members of the need to obtain the authority of all joint assureds on the policy to sign the Application Form on their behalf and to bind them to their obligations under the MLC Extension Clause, and to remind all Members and Joint Members that they are jointly and severally liable to reimburse the Club for any MLC liabilities falling outside standard P&I cover. Thus, if the Member fails to meet the obligation the Club will look to other Members and all other Joint Members on the policy to make good the debt.

All Clubs in the International Group have issued a similar Circular.

STEVEN COCKBURN
GROUP DIRECTOR (FD&D)
The North of England P&I Association Limited

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