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, said: “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 20th August, 2013.
Mr Brown added: “MLC 2006 recognises the need to ensure that seafarer recruitment and manning agencies do not supply seafarers to ship owners 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 ship owner.
“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.”