Seacurus urges more certainty from flag states on yachting agency responsibilities under MLC 2006

Specialist marine insurance intermediary Seacurus has called for more flag states to establish a process of compulsory registration for all providers of Seafarer Recruitment and Placement Service (SPRS) in the yachting sector.
 
Thomas Brown, managing director of Seacurus, says, “More countries need to follow the initiatives shown by the likes of the UK MCA and France, with the latter making company registration compulsory for SRPSs in the yachting sector. The measures introduced by the French authorities, for example, provide positive clarification for all seafarers placed on board yachts by French yachting agencies. They stipulate that any Yacht Crew Agency (YCA) which operates on French soil under any auspices, and which performs any role at all in introducing a seafarer to employment on a vessel, falls under the requirement to register on the list of yachting SRPSs established in France. But, even then, there do appear to be some grey areas in the national regulations which are leading to confusion in the yachting sector.”
 
The Professional Yachting Association (PYA) recently issued a statement emphasising that there has been ongoing confusion about the status of Yacht Crew Agencies (YCAs) under the Maritime Labour Convention 2006 (MLC), which came into effect in August 2013.  PYA says the causes of the confusion have been differences between flag states in interpreting the terms ‘recruitment and placement’, differences between flag states in integrating MLC with pre-existing legislation regarding employment services, and inconsistency among YCAs themselves when operating in the territories of different flag states, especially where one such territory may be a non-ratifying state.

According to PYA, YCAs operating in France need only to guarantee the verification process of the appropriate certification for any position offered on board. They do not need to include any provision for unpaid salaries.

Thomas Brown says, “The French government has established a process of compulsory registration for all yachting SPRSs conducting their business from a French territory. We can only assume that the registration process takes a robust view of the financial wherewithal of the applicant agency, and that the government inspector responsible for the approval of the application would have to be satisfied that the said agency was of sufficient financial standing to assume the liability for any personal financial losses incurred by seafarers they place on board yachts, in accordance with MLC Regulation 1.4 covering Recruitment and Placement. But some YCAs may find it difficult to provide confirmation of the financial standing needed to satisfy the authorities.

 
“Meanwhile, there would appear to be no compulsory requirement for French yachting agencies to demonstrate that they have a system of protection, by way of insurance or equivalent appropriate measure in place as envisaged by MLC Standard A.1.4.5(c) (vi).  Compliance with this regulation would seem to be achieved by agencies demonstrating to an inspector that they are on the new French registry.

“So while the French authorities are to be congratulated for introducing a degree of certainty into their regulation of YCAs and their MLC responsibilities, the fact remains that liability under MLC Standard A.1.4.5(c) (vi) does not disappear simply because the SRPS has satisfied the French regulations. The SRPS still has an exposure to indemnify its seafarers’ financial losses in accordance with the MLC standard, and this is where appropriate insurance cover is invaluable. Such cover is available both to SRPSs operating in domiciles where it is required by the relevant regulatory body. It is also available to agencies in countries such as France that would like to take out the cover voluntarily as either a balance-sheet protection in the event that they have to respond in the event of a yacht owner’s contractual default giving rise to a personal financial loss for a seafarer they have placed at sea, or if needed to enhance the company’s credit rating when applying to become a registered company.

“It was clear from the second meeting of the ILO Special Tripartite Committee meeting held in Geneva in February this year that many flag states are having difficulty in interpreting the requirements placed upon them in respect of MLC Standard A.1.4.5(c) (vi). It is time for greater clarity of the kind shown by the UK and France, but also for greater awareness of the value of MLC insurance coverage which responds in the event of a yacht owners’ contractual default.”

Seacurus Ltd is an FCA-regulated insurance intermediary, founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance-sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com

Formed in 2007, Barbican Insurance Group underwrites business predominantly through its syndicates at Lloyd’s. Barbican’s lines of business include marine, aviation and transport re/insurance, property re/insurance, media and contingency, energy and specialty lines including casualty reinsurance, cyber liability, healthcare liability, financial and professional lines and professional indemnity. 

Barbican also has a non-Lloyd’s financial solutions business based in Guernsey which offers insurance and reinsurance programmes to the global market. It also has a number of subsidiary companies, including Barbican Protect Limited, Castel Underwriting Agencies Limited and Seacurus Limited. www.barbicaninsurance.com

CrewSEACURE launches MLC assistance card to help seafarers in need

Specialist marine insurance intermediary Seacurus has launched a Seafarer Assistance Card scheme to enable seafarers to check for cover and provide timely notification of claims under the Maritime Labour Convention (MLC 2006). The cards are personal to the seafarer and are issued by the crewing company when seafarers take up their first position at sea.

 

Seacurus managing director Thomas Brown says, “Under the soon-to-be implemented MLC 2006 amendments, each MLC-compliant vessel will be required to carry a certificate of financial responsibility which provides seafarers with details of the financial protection which the owners have put in place, as well as the details of who to call in the event of a claim. 

 

“The same is not true for crewing companies which, as policy holders, keep the master policy in their office, and evidence of cover is not readily available to the seafarers it serves to protect. In the interests of transparency, we felt it important that seafarers had their own evidence of cover, coupled with user-friendly direct access to the underlying security. 

 

“Time is often of the essence. This is where the Seafarer Assistance Cards perform a vital function. They provide the seafarer with access to the CrewSEACURE web portal to check for cover and help them provide timely notification of claims.”

 

Seacurus manages the financial security requirements for an ever-increasing number of seafarer recruitment & placement services and crew management companies. Thomas Brown says, “We are seeing a number of referrals from flag state inspectors when crewing companies apply for their MLC approvals.  Leading the way with respect to MLC compliance for crew companies are the UK MCA and Transport Canada, both flag state administrations which require crewing companies operating within their jurisdictions to demonstrate that they have in place a system of financial security to comply with MLC2006 Reg. 1.4 which safeguards the financial interests of the seafarers that such companies place at sea.

 

“Seacurus has evolved its CrewSEACURE product range and developed variant wordings to meet these requirements. If MLC 2006 is to fulfil its promise as a seafarers’ bill of rights, it needs the support of products and services which deliver on the intent of the convention.”

 

Full details of the newly developed web portal can be found at www.crewseacure.com

 

Seacurus Ltd is an FCA-regulated insurance broker, founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance-sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com

 

 

Formed in 2007, Barbican Insurance Group underwrites business predominantly through its Syndicates at Lloyd’s. It also has a non-Lloyd’s financial solutions business based in Guernsey which offers insurance and reinsurance programmes to the global market and number of service companies including, Barbican Underwriting Limited, Castel Underwriting Agencies Limited, Professional Indemnity Protect Limited and Seacurus Limited.

Barbican Syndicates at Lloyd’s have a stamp capacity of £260m for the 2015 year of account and underwrite marine, aviation and transport re/insurance, property re/insurance, media and contingency, energy and specialty lines including casualty reinsurance, cyber liability, healthcare liability, financial and professional lines and professional indemnity. www.barbicaninsurance.com

 

 

 

For more information: Thomas Brown Seacurus Limited Tel: +44 191 4690859 email: tbrown@seacurus.com

Seacurus launches new South-East Asian petro-piracy cover

Specialist marine insurance intermediary Seacurus has developed a petro-piracy endorsement which can be added to existing Kidnap & Ransom (KR) insurance cover in response to the evolving threats to ships, their cargoes and crews when transiting the South China Sea, Malacca Straits, Indonesian Archipelago and Gulf of Guinea.

According to recent figures published by the International Maritime Bureau, South-East Asia accounted for three-quarters of global maritime piracy last year after a surge in tanker hijackings helped to fuel a 22 per cent jump in armed robbery and pirate attacks on ships in the region. There were 183 actual and attempted incidents of piracy and robbery involving ships in South-East Asian waters last year, compared to 150 in 2013. In the Gulf of Guinea, meanwhile, cargo theft is likely to remain on the agenda of Nigeria-based criminal gangs throughout 2015.

Denis Nifontov, Head of Marine K&R at Seacurus, says, “The criminal reach demonstrated by last year’s hijack of the tanker Kerala, coupled with the number of successful and attempted attacks in 2014 and the lack of any evidence that such gangs have been neutralised, suggests that further attempts at cargo theft will take place in 2015 across the region. Seacurus has recognised the need for traditional marine K&R cover to evolve to provide all interested parties with assurance that every eventuality is covered.

“The modus operandi of South-East Asian and Gulf of Guinea criminal gangs differs from the Somalian piracy model. Ships’ crews are regularly exposed to life-threatening situations as criminals take control of and ransack vessels, stealing valuable petro-chemical cargoes for commercial gain.”

The new cover from Seacurus recognises the need to protect crews against the potential for a kidnapping situation, and ship and cargo owners against the risk of business interruption and property theft. In addition to the benefits of a $1m marine K&R policy, the cover includes as standard such additional benefits as loss of hire ($500,000), loss or theft of cargo ($500,000), loss of bunkers ($250,000), and loss or theft of money ($50,000) - all within an aggregate policy limit of $5m.

Denis Nifontov says, “Given that, by its very nature, criminal activity is unpredictable, Seacurus believes that, for a small additional voyage cost, cover can be arranged to give all parties to the maritime adventure peace of mind that their interests are insured. Shipowners, charterers and cargo interests (who can be added to the policy as co-insureds to cover their own interests in the voyage), can buy $5m of cover for a seven-day voyage for a typical premium cost of $1,250, subject to an assessment of the usual underwriting information. In this way, all parties can protect their standard marine insurances and insurance records from the potential for costly claims, whilst negating the need for costly and time-consuming recovery actions and General Average settlements.”

Seacurus Ltd is an FCA-regulated insurance broker, founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance-sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com


Formed in 2007, Barbican Group Holdings is an insurance group writing business predominantly through its syndicates at Lloyd’s. It also has a non-Lloyd’s financial solutions business based in Guernsey which offers insurance and reinsurance programmes to the global market. Barbican Syndicates 1955 and 6113 at Lloyd’s has a stamp capacity of £227.5m for the 2013 year of account and underwrites cyber liability, financial and professional lines, healthcare liability, international casualty reinsurance, marine insurance, marine reinsurance, North American casualty reinsurance, property, property reinsurance and corporate, middle market and scheme/affinity group clients in the UK and Ireland. www.barbicaninsurance.com



For more information:
Denis Nifontov
Seacurus Limited
Tel: +44 20 7082 1955
email: dnifontov@seacurus.com

Is mutualising shipowner insolvency the answer to crew abandonment?

Thomas Brown, managing director of specialist insurance intermediary, Seacurus, poses the question in today's TradeWinds newspaper of whether mutualising shipowner insolvency is the answer to crew abandonment

Amendments to the Maritime Labour Convention 2006 designed to protect abandoned seafarers are due to enter force in early 2017. Some insurance intermediaries and commentators are predicting that the International Group of P&I Clubs could, and perhaps should, provide the necessary cover to enable shipowners to meet their enhanced MLC obligations. But, contrary to the impression circulating in some parts of the market, this is anything but a done deal. Mutualising the risk of financial insolvency is just one option to set alongside other initiatives from the commercial insurance market.

This would not be the first time, for example, that the IG has declined to intervene in contentious coverage issues, leaving owners instead to find a solution in the non-mutual market. Examples of recent abstentions include additional cover for piracy risks and OPA - Certificates of Financial Guarantee.

In the case of piracy, it was not deemed to be in the interests of public policy for the clubs to become involved in this ‘modern-day’ insurance requirement, whilst numerous arguments have also been raised against clubs becoming involved in underwriting any form of financial guarantee. In February this year, marine insurance broker Marsh reacted to the proposal by the Standard P&I Club to offer OPA COFRs directly to its members by arguing that the legal defences relied on by owners and their clubs could become blurred if the insurer covering the underlying risk was also the insurer providing the financial guarantee. Marsh questioned how certain the Standard Club could be that the distinction between itself as a COFR guarantor and its conventional role as a P&I insurer would be upheld in a contested court hearing.

It has long been the overarching view of the clubs that they should not offer financial guarantee insurance to their members. This is exemplified by one IG club which in 2001 issued a circular in connection with the International Guidelines to Flag States on Seafarer Abandonment, which had just been adopted. The circular provided the following advice to members; “Unfortunately the guidelines produced are not only of doubtful utility, they are also of doubtful practicality. The IG clubs have indicated that they would be unable to issue notifications to individual seafarers. In addition, they have pointed out that claims for liabilities to seafarers are always subject to club rules and terms of entry (including deductibles) and that payment could not therefore be guaranteed to individual seafarers. This means that IG clubs will not be able to issue the certificates envisaged in the guidelines.”

The circular refers to the very same guidelines that have now been included almost verbatim into the Maritime Labour Convention and will come into force in early 2017.

So, aside from the mandatory nature of the forthcoming amendments, it is hard to see what has changed since 2001 which would now negate this particular club’s former position on this matter of regulatory compliance. Why would the clubs abandon their position of not wanting to write COFR business, to now begin writing financial guarantee insurance in respect of abandonment risks as required under MLC 2006? Surely the same rationale should be applied to the latter type of risk as is applied to other categories of financial guarantee business? Surely the clubs face an insurmountable conflict of interest when balancing the interests of seafarers with those of their members?


Unlike the OPA COFR, is it a question of the perceived loss costs and realistic disaster scenarios (RDS) being manageable from the club’s perspective? Most recently, in December this year, Marsh reportedly advocated that the clubs should pool liability for owner insolvency, warning that, “The payment of four months’ wages to seafarers on even a 30-vessel fleet would exceed the $9m risk that individual clubs currently retain”. If this is proven to be an accurate loss cost, then what cost would the clubs have to assign to their RDS calculations - all this coming at a time when clubs have the pressure of Solvency II to concern themselves with.

It follows that, if the clubs are to intervene in the case of seafarer abandonment, they must be willing to use the mutual funds of their solvent members to enable them to act as financial guarantors to cover the debts of their insolvent members. Moreover, as a matter of insurance law and MLC regulatory requirement, as it is the seafarers who have the ‘insurable interest’, mutual cover in respect of seafarer abandonment would involve the clubs granting their members’ employees (the seafarers) direct access to the club’s financial security. Direct access for seafarers would present an interesting claims management challenge for the clubs.

By mutualising the risk of financial insolvency, the industry risks tilting the playing field against well-founded, financially solvent shipowners who, at significant financial cost, employ best practice throughout their operations. Why should such operators assume liability for the debts of less-well-found competitors? And why should such a ‘ticket to trade’ be demoted to just another ‘club benefit’?

Moreover, can seafarers who are utterly abandoned and in need of immediate relief truly rely on their employers’ insurance clubs to overcome the obvious conflicts of interest involved in the mutual underwriting of such risks?

There is comparatively little time to reconcile these major issues and to deliver on the true intent of MLC to create a ‘seafarer’s bill of rights’. To provide a quick fix and engineer further regulatory mediocrity should not be an option.

The question is whether or not to mutualise financial insolvency. The answer is as yet unknown, and we should not presuppose an outcome which has yet to be decided. The real question that merits further discussion and clarity is whether mutualisation of this risk is in the best interests of either shipowners or the seafarers they employ? Until we have clarity on this question from the IG, it will always present a barrier to new product innovation.


www.seacurus.com

email: tbrown@seacurus.com

Concern persists over unpaid wages despite positive MLC enforcement

Specialist marine insurance intermediary Seacurus says that overall confidence in the successful implementation of the Maritime Labour Convention 2006 (MLC) should not conceal the fact that there is continuing concern over the risk of abandonment and the timely payment of crew wages.

Thomas Brown, managing director of Seacurus, says, “Recent figures from the Paris Memorandum of Understanding (MoU) on Port State Control indicate that the MLC Convention is being well-enforced, with 113 ship detentions relating to MLC deficiencies recorded since MLC 2006 entered into force on 20 August, 2013.

“Overall, it seems that progress is being made and that MLC can deliver on its promises. But the Paris MoU figures also show that detainable MLC-related deficiencies were most frequently recorded in the areas of ‘payment of wages’ (39.5 percent) and ‘manning levels for the ship’ (28.6 percent).

“Moreover, a survey earlier this year by seafarer website and employment agency Crewtoo appears to bear out the Paris MoU data. Almost half the respondents to the survey, which gathered the views of over 1,000 seafarers, said they had had to wait at some point for delayed wage payments to be made by their employer. The same survey also revealed that 36 per cent of seafarers had been forced to work without pay, while 17 percent had been abandoned.

“Overdue salaries are one of the red-flag indicators of financial distress for shipping companies, and many seafarers are being subjected to undue stress, frustration and uncertainty over wage payments. MLC 2006 states that wages should be paid at least every month, so it is disappointing to see that so many seafarers have experienced delays. There are clearly reasons for concern in this regard.

“It seems that seafarers feel positive about the effect that MLC 2006 is having on their day-to-day existence, reflecting both the spirit and the letter of the convention. Seafarers are aware of the protective systems in place, such as the Seacurus CrewSeacure cover, and are willing to research the subject before sailing. This could be something of a tipping point for the industry. But it is not quite time for pats on the back and high-fives. There are still problems which need to be addressed.”

The latest issue of the monthly ‘Seacurus Bulletin’ can now be accessed on the Seacurus website at http://goo.gl/mxnXFu . In addition to MLC 2006 enforcement news, it includes articles on piracy, the OW Bunker & Trading collapse, and the ban on ransom payments for terrorism.

Seacurus Ltd is an FCA-regulated insurance broker, founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance-sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com

Formed in 2007, Barbican Group Holdings is an insurance group writing business predominantly through its syndicates at Lloyd’s. It also has a non-Lloyd’s financial solutions business based in Guernsey which offers insurance and reinsurance programmes to the global market. Barbican Syndicates 1955 and 6113 at Lloyd’s has a stamp capacity of £227.5m for the 2013 year of account and underwrites cyber liability, financial and professional lines, healthcare liability, international casualty reinsurance, marine insurance, marine reinsurance, North American casualty reinsurance, property, property reinsurance and corporate, middle market and scheme/affinity group clients in the UK and Ireland. www.barbicaninsurance.com

Seacurus calls for enforcement of Port State Control regulations on MLC

Specialist marine insurance intermediary Seacurus has called for proper enforcement of Port State Control regulations in the lead-up to adoption of amendments to the Maritime Labour Convention 2006 designed to protect abandoned seafarers and seafarers injured in occupational accidents.

The MLC amendments are scheduled to enter force in early 2017, at which point those countries which have ratified MLC 2006 will be bound by those amendments unless 40 per cent of ratifying nations reject the new provisions in writing.

Before then, however, on 20 August 2014, an ILO resolution agreed by member states in 2006 comes into effect whereby full Port State Control (PSC) can be applied by nations which are a party to MLC 2006, regardless of whether or not the ships being inspected are flagged with nations which have ratified the convention. This is the so-called ‘no more favourable treatment’ clause which seeks to ensure a level playing field whereby ships of countries which have ratified MLC 2006 will not be placed at a competitive disadvantage.

Seacurus managing director Thomas Brown says, “This rigorous inspection programme may force shipowners to demonstrate to PSC inspectors that the crew managers and seafarer recruitment and placement services with whom they work can confirm compliance with Regulation 1.4 of MLC 2006 by providing evidence of a system of financial security to cover seafarers’ monetary loss in the event of their employers’ contractual default.

“It is to be hoped that this regulation, if properly enforced by PSC, will offer a degree of protection to those at sea over the next two and a half years, while the industry prepares for the now inevitable regulatory requirement in 2017.”


Seacurus Ltd, part of the Barbican Insurance Group and authorised and regulated by the FCA, is an insurance broker founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. In 2013 it launched CrewSEACURE, the first ever insurance policy designed exclusively to protect the rights of seafarers when ships are abandoned at sea. Seacurus is a market leader in the design and implementation of solutions to protect companies from unforecasted balance-sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com


Formed in 2007, Barbican Insurance Group underwrites business predominantly through its Syndicates at Lloyd’s. It also has a non-Lloyd’s financial solutions business based in Guernsey which offers insurance and reinsurance programmes to the global market and number of service companies including, Barbican Underwriting Limited, Castel Underwriting Agencies Limited, Professional Indemnity Protect Limited and Seacurus Limited.

Barbican Syndicates at Lloyd’s have a stamp capacity of £250m for the 2014 year of account and underwrite marine, aviation and transport re/insurance, property re/insurance and specialty lines including casualty reinsurance, cyber liability, healthcare liability, financial and professional lines and professional indemnity.

www.barbicaninsurance.com

Seacurus debates MLC abandonment insurance issues with UK Trade Minister

During a recent tour of north-east England, Lord Livingston, the UK’s Minister for Trade and Investment, visited the Gateshead headquarters of Seacurus which, in April 2013, launched CrewSEACURE, the first ever insurance policy designed exclusively to protect the rights of seafarers when ships are abandoned at sea.

Seacurus has a well-established relationship with UK Trade & Investment (UKTI), having received expert advice and support from its Passport to Export scheme which helped the company to develop 99 per cent of its insurance premium income from overseas markets. As such, Seacurus was selected as one of only three companies in the north-east of England to meet with the minister.

Commenting on the visit, Thomas Brown, managing director of Seacurus, said, “I am delighted to have had the opportunity to meet with Lord Livingston and to discuss with him our work with the international shipping industry to deliver bespoke insurance solutions.

“While Seacurus is a relatively small organisation, our market expertise, willingness to innovate and commitment to serving the marine sector has enabled us to secure a prominent position in the global market, to deliver important marine insurance solutions that tackle difficult modern day problems such as piracy and seafarer abandonment. The recent acquisition of our company by the Barbican Insurance Group can only serve to enhance our global reach.”

During the visit, Lord Livingston heard about recent international regulatory developments affecting the rights of seafarers in cases of abandonment. Commenting on these discussions, Thomas Brown said, “Such regulatory developments have a positive effect on the welfare of 1.2 million seafarers serving at sea today and Seacurus is leading the development of bespoke insurance solutions to address the specific needs of the Maritime Labour Convention in this regard.

“We are proud to be a part of the UK-based insurance industry that has a long history of world-leading innovation. Through CrewSEACURE, we have provided the shipping industry with a cost-effective means of meeting all its financial security obligations under the Maritime Labour Convention, and we hope that it will become an integral part of the industry’s efforts to protect its seafarers.”

Seacurus Ltd, part of the Barbican Insurance Group, is an FCA-regulated insurance broker founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance-sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com

Formed in 2007, Barbican Insurance Group underwrites business predominantly through its syndicates at Lloyd’s. It also has a non-Lloyd’s financial solutions business based in Guernsey which offers insurance and reinsurance programmes to the global market, and a number of service companies including Barbican Underwriting Limited, Castel Underwriting Agencies Limited, Professional Indemnity Protect Limited and Seacurus Limited.

Barbican Syndicates at Lloyd’s have a stamp capacity of £250m for the 2014 year of account and underwrite marine, aviation and transport re/insurance, property re/insurance and specialty lines, including casualty reinsurance, cyber liability, healthcare liability, financial and professional lines and professional indemnity.

Seacurus calls for speedy implementation of MLC amendments

Specialist marine insurance intermediary Seacurus has welcomed the agreement to include in the Maritime Labour Convention unpaid crew wages in the event of abandonment, and has called for the earliest possible implementation of draft proposals to amend the Convention accordingly

Agreement was reached between shipowners, governments, seafarers, NGOs and other organisations meeting at the special Tripartite Committee of the Maritime Labour Convention (MLC) at the International Labour Organisation (ILO) headquarters in Geneva this month. At the meeting, all parties were willing to see abandonment provisions included in the Convention. Draft amendments were duly finalised and accepted almost unanimously.

Thomas Brown, managing director of Seacurus, says, “This is a decision which should be welcomed by all parties in the maritime industry. Now that it has been taken, it is in everybody’s interest to press ahead without delay.

“It was encouraging to note the pragmatic approach adopted by all parties at the STC meeting. The amendments will now be submitted to the International Labour Conference in June 2014, after which a prescribed period will be set for member states to register any disagreement to the changes. The amendments will come into force six months thereafter. The meeting in Geneva discussed the prescribed period being one year, and it is to be hoped that this will be confirmed in June.

“The requirement for cover will be mandatory on all shipowners, thereby eliminating any uncertainty. Moreover, such cover already exists in the form of the CrewSEACURE policy created last year by Seacurus which provides indemnification in the event of the financial default of seafarers’ employers, and offers recompense in respect of unpaid crew wages. The policy will enable all employers of seafarers to meet their regulatory obligations under MLC 2006. The cover is available now, and it is affordable.

“Any attempt at unreasonable delay in implementing the MLC amendments should be strongly resisted.”

Seacurus Ltd, part of the Barbican Insurance Group, is an FCA-regulated insurance broker founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance-sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com

Formed in 2007, Barbican Group Holdings is an insurance group writing business predominantly through its syndicates at Lloyd’s. It also has a non-Lloyd’s financial solutions business based in Guernsey which offers insurance and reinsurance programmes to the global market. Barbican Syndicates 1955 and 6113 at Lloyd’s has a stamp capacity of £227.5m for the 2013 year of account and underwrites cyber liability, financial and professional lines, healthcare liability, international casualty reinsurance, marine insurance, marine reinsurance, North American casualty reinsurance, property, property reinsurance and corporate, middle market and scheme/affinity group clients in the UK and Ireland. www.barbicaninsurance.com

Seacurus says seafarers should be protected now against risk of unpaid wages

Specialist marine insurance intermediary Seacurus says that reported doubts about the insurance industry’s ability to insure the liability for unpaid wages of abandoned seafarers under the Maritime Labour Convention 2006 are inaccurate and ill-founded.

It is already an agreed principle under MLC 2006, which came into force in August 2013, that liability for the unpaid wages of seafarers currently falls to the recruitment and placement services which help seafarers find employment at sea. Some have rightly argued that this is a misdirected arrow and that it is the shipowner/employer, and not the agent, that should assume this liability.

In a positive move, it is now understood that tripartite talks between owners, unions and governments scheduled for April 2014 at the ILO headquarters in Geneva will finally address this issue, with talks set to concentrate on the specific inclusion of unpaid crew wages in the shipowner’s MLC obligation to repatriate crew in cases of abandonment.

Thomas Brown, managing director of Seacurus, says, “It is time for clarity and certainty on this important issue. The fact is that any cover that does not provide for the indemnification of unpaid wages fails to adequately protect seafarers against the real risk of abandonment. Effective employment protection must include crew wages, without which seafarers risk becoming the cashflow casualties of their employers’ insolvencies.

“It has been suggested by some industry commentators that insurance to cover unpaid wages would be unfeasibly expensive for owners, and that in any case it is only those owners who are likely to default who will need the cover. This is wrong on both counts. Firstly, the CrewSEACURE policy launched earlier this year by Seacurus provides comprehensive cover at low cost, with premiums of as little as $50 per seafarer per year available today. Secondly, the point about only bad owners requiring cover in respect of unpaid wages is immaterial, since the proposed requirement for cover will be mandatory on all shipowners. Mandating the requirement in this way will force out of business those owners who - it is claimed - ‘need the cover’, as they will be unable to obtain the requisite financial security called for by MLC.

“If you cannot pay your crew, you should not put your ship to sea, it’s that simple. Any arguments to the contrary would serve to do our industry a disservice. Unfortunately, without the proposed amendments, there is currently no meaningful deterrent to this premise.

“The fact is that affordable cover in respect of the indemnification of unpaid wages is available, and it is available now. It is in the best interests of the industry and seafarers alike that responsible owners support the ratification and early adoption of the draft amendments to MLC in this regard.”

Seacurus Ltd is an FCA-regulated insurance broker, founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance-sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com

Formed in 2007, Barbican Group Holdings is an insurance group writing business predominantly through its syndicates at Lloyd’s. It also has a non-Lloyd’s financial solutions business based in Guernsey which offers insurance and reinsurance programmes to the global market. Barbican Syndicates 1955 and 6113 at Lloyd’s has a stamp capacity of £227.5m for the 2013 year of account and underwrites cyber liability, financial and professional lines, healthcare liability, international casualty reinsurance, marine insurance, marine reinsurance, North American casualty reinsurance, property, property reinsurance and corporate, middle market and scheme/affinity group clients in the UK and Ireland. www.barbicaninsurance.com

Seacurus wins award for seafarers’ abandonment insurance policy

The policy launched this year by specialist marine insurance intermediary Seacurus Ltd to indemnify seafarers in the event of the financial default of their employers has been recognised as the Broking Initiative of the Year at the Insider Honours 2013 award ceremony.

The award recognises Seacurus’s innovative approach to tackling the long-standing issue of how to safeguard the rights of seafarers in cases of abandonment. In April 2013, Seacurus, part of the Barbican Insurance Group, launched CrewSEACURE, the first product designed exclusively to address the issues and liabilities arising from the stranding of crew members and to satisfy the legal requirements under the new Maritime Labour Convention (MLC) 2006, which has been dubbed ‘the seafarer’s bill of rights.’

The award was launched in 2012 by Insider Publishing Ltd, whose titles include The Insurance Insider. It was presented to Thomas Brown, managing director of Seacurus, at the event, which was held in London. The judges highlighted CrewSEACURE’s ability to ‘provide a lifeline for people wherever they are in the world in the face of extreme financial pressures,’ adding, ‘This product addresses a long-standing global problem and is a watershed moment for the industry’.

Commenting on the award, Brown said, “On behalf of my colleagues at Seacurus, we are delighted and honoured to have been recognised for our efforts to provide a pragmatic and affordable solution to the problem of seafarer abandonment. CrewSEACURE not only offers a lifeline to those crew members who have been set adrift by their ship owners, but also helps to translate the goals of MLC 2006 into tangible benefits for seafarers.”

Seacurus Ltd is an FCA-regulated insurance broker, founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance-sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder.

Formed in 2007, Barbican Group Holdings is an insurance group writing business predominantly through its syndicates at Lloyd’s. It also has a non-Lloyd’s financial solutions business based in Guernsey which offers insurance and reinsurance programmes to the global market. Barbican Syndicates 1955 and 6113 at Lloyd’s has a stamp capacity of £227.5m for the 2013 year of account and underwrites cyber liability, financial and professional lines, healthcare liability, international casualty reinsurance, marine insurance, marine reinsurance, North American casualty reinsurance, property, property reinsurance and corporate, middle market and scheme/affinity group clients in the UK and Ireland. www.barbicaninsurance.com

Barbican acquires specialist marine insurance broker

Barbican Group Holdings Limited (Barbican) has today announced that it has acquired Seacurus Ltd (Seacurus), a UK-based specialist marine insurance broker.

Established in 2004, Seacurus focuses specifically on revenue protection in the marine insurance market. A leading provider of marine kidnap & ransom insurance, the company offers a range of products designed to help companies in the shipping industry manage a wide variety of operating and financial risks.

Seacurus will continue to operate under its current brand. Details of the transaction have not been disclosed.

David Reeves, chief executive officer of Barbican, said: “Today’s acquisition marks a significant milestone in the continuing growth of our marine operations. Seacurus has built a leading position within the marine insurance broking sector, particularly in the kidnap & ransom arena. Its success reflects the experience and expertise of its team, led by Thomas Brown. Seacurus is an excellent fit for Barbican and we see clear synergies between us, not only in terms of the portfolios of business, but also the culture which exists in each organisation.”

Thomas Brown, managing director of Seacurus, added: “Becoming part of Barbican provides us with an excellent platform from which to further expand and enhance the comprehensive range of bespoke solutions we deliver to our clients in the shipping industry. We look forward to working closely with our new colleagues to achieve this.”

In April 2013 Seacurus launched CrewSEACURE, an insurance product for employers of seafarers required to meet regulatory obligations under the Maritime Labour Convention 2006 and the International Guidelines on Seafarer Abandonment. The product offers cover in the event of an employer’s financial default, and includes the indemnification of unpaid wages.

                                     

                                          

Contacts

Barbican

Damian Beeley: +44 (0) 20 7861 3139

Zoe Pocock: +44 (0) 20 7861 3961

Seacurus

Chris Hewer:  +44 (0) 1903 50 20 50

chris@merlinco.com

Formed in 2007, Barbican Group Holdings is an insurance group writing business predominantly through its Syndicates at Lloyd’s. It also has a non-Lloyd’s financial solutions business based in Guernsey which offers commercial insurance solutions to the Channel Islands. Barbican Syndicates 1955 and 6113 at Lloyd’s have a stamp capacity of £227.5m for the 2013 year of account and underwrite cyber liability, financial and professional lines, healthcare liability, international casualty reinsurance, marine insurance, marine reinsurance, North American casualty reinsurance, property, property reinsurance and corporate, middle market and scheme/affinity group clients in the UK and Ireland.

www.barbicaninsurance.com

Seacurus Ltd is an FCA-regulated insurance broker, founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder.

www.seacurus.com

Seacurus welcomes new Lloyd’s seafarer abandonment risk code

SPECIALIST marine insurance intermediary Seacurus has welcomed the decision of Lloyd’s to amend its risk codes to include a new class of insurance covering seafarer abandonment (SA).

Lloyd’s provides guidance to underwriters on the classification of business into various categories using a risk coding scheme which provides a common basis for the classification and description of risk. Thomas Brown, managing director of UK-based Seacurus, says, “This new class of insurance is very welcome and very timely. Seafarer Abandonment (SA) is classed as financial guarantee insurance, meaning that any Lloyd’s syndicate wanting to write it will need approval from the Lloyd’s performance directorate to do so. Seacurus, acting as the managing general underwriter for Lloyd’s Brit Syndicate under a fully delegated underwriting authority, has that approval.”

Last month, Seacurus launched CrewSEACURE, a new insurance policy to indemnify seafarers in the event of the financial default of their employers which, for the first time, offers recompense in respect of unpaid crew wages. The policy will enable all employers of seafarers to meet their regulatory obligations under the Maritime Labour Convention 2006 (MLC), which enters force on 20 August, 2013.

Thomas Brown says, “MLC 2006 recognises the need to ensure that seafarer recruitment and manning agencies do not supply seafarers to shipowners without the requisite financial protection in place. Such protection provides a financial safeguard to seafarers in the event that they are left abandoned as a result of the financial failure of the shipowner.

“Many of the enquires we have received to date have been from manning and recruitment agents trying to satisfy these obligations. A number of these agents are very concerned about supplying seafarers to vessels without this level of protection in place. Those agents who do refuse to provide seafarers who are not protected in this way will be acting in accordance with the requirements of MLC, and industry will effectively be regulating industry, at the same time encouraging best employment practice.”

For a photo of Thomas Brown, email: chris@merlinco.com

Seacurus Ltd is an FSA-regulated insurance broker, founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com

Seacurus provides industry first with insurance cover for unpaid crew wages

SPECIALIST marine insurance intermediary Seacurus has launched a new insurance policy to indemnify seafarers in the event of the financial default of their employers which, for the first time, offers recompense in respect of unpaid crew wages. The policy will enable all employers of seafarers to meet their regulatory obligations under the Maritime Labour Convention 2006 (MLC), which enters force on 20 August, 2013.             

The new policy, CrewSEACURE, provides up to $10m of cover in the event of an employer’s financial default. It includes personal accident protection and covers medical expenses as well as subsistence and repatriation costs. It will also respond, unlike any other product currently on the market, in respect of the non-payment of seafarers’ wages, for a period of up to six months.

CrewSEACURE is underwritten by first-class A-rated global insurers in the Lloyd’s and Company markets in London. It offers an independent round-the-clock claims service managed by Thomas Miller Claims, the world’s leading maritime ‘people claims’ service provider. It also includes a claims mandate which protects the interests of shipowner and seafarer alike to ensure a fair claims process.  A 24-hour helpline is available for seafarers and their advisers, who are afforded direct access to the insurers’ claims adjusters. In order to deliver the CrewSEACURE product to market, Seacurus will act as managing general underwriters with access to Lloyd's security led by Brit Syndicates Ltd and companies' market security provided by Aspen Insurance UK Ltd.

CrewSEACURE provides cover which meets flag state and port state control approval, and is authenticated by a ship-specific MLC2006 insurance certificate to demonstrate compliance with the Maritime Labour Convention.  Comprehensive cover is provided at low cost, with premiums of as little as 50 cents per-seafarer per-day available.

Thomas Brown, managing director of UK-based Seacurus, says, “CrewSEACURE has been designed to cover the requirements of MLC. The shipping industry faces economic challenges. Not all shipowners and operators will survive the current global recession, and this will inevitably have a knock-on effect on those seafarers who are caught up in the resulting bankruptcy cases. Just recently, for example, we saw arrest orders issued by a court in the Far East in respect of two tankers after crew complained they had not been paid for almost three months.

“The fact is that any cover that does not provide for the indemnification of unpaid wages fails to adequately protect seafarers against the real risk of abandonment. History shows that the only way for seafarers to recover unpaid wages in the absence of any form of financial security is to remain on board until the ship is sold. This serves only to make matters worse for the shipowner as well as for seafarers and their families, who suffer further financial loss and hardship as a result of the long delays that can accompany the judicial sale of a vessel. CrewSEACURE removes the need for seafarers to remain on board an abandoned vessel by ensuring that they receive their unpaid wages before being repatriated home to seek new employment opportunities.

Giles Heimann, secretary-general of IMEC (International Maritime Employers Council Ltd), says, “IMEC and its members believe that the Maritime Labour Convention is the most significant piece of maritime legislation for many years. We are committed to supporting our members in the run-up to its introduction in August 2013, and to working with them to secure effective and fit-for-purpose provision for seafarers and employers alike. I am pleased to see that companies such as Seacurus are providing options for the industry, to support their obligations under MLC.”

Thomas Brown concludes, “MLC is a watershed moment for shipping. It has been called the seafarer’s ‘bill of rights’, and with good reason. Previously, there had been a lack of political will or force of law to encourage the insurance industry to provide a workable system of financial security. But that will change with the imminent implementation of MLC. Seacurus believes that effective employment protection must include crew wages. For that reason, it has provided an effective system of financial security to put an end to the spectre of seafarers becoming the cashflow casualties of their employers’ insolvencies.”

For a photo of Thomas Brown, email: chris@merlinco.com

Seacurus Ltd is an FSA-regulated insurance broker, founded in 2004, specialising in bespoke revenue protection cover for the maritime industry. It is a market leader in the design and implementation of solutions to protect companies from unforecasted balance sheet impacts, including credit default, charter party cancellations, hijackings and voyage disruptions caused by political events. Seacurus established the first delegated underwriting binding authority for marine kidnap insurance and is an approved Lloyd’s Coverholder. www.seacurus.com