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IMO welcomes entry into force of financial security for seafarers

On the 18th January 2017 the new obligations under the Maritime Labour Convention (MLC 2006), which require shipowners to have compulsory insurance to cover abandonment of seafarers and claims for death or long-term disability of seafarers, were entered into force. The new obligations were welcomed by the IMO Secretary-General Kitack Lim who provided that the 2014 amendments to the MLC will provide a better protection for seafarers and their families and ensure better working conditions. Moreover, these amendments have been pronounced as the fruit of successful collaboration between IMO and International Labour Organization (ILO). Mr Lim also highlighted the importance of seafarers in shipping industry as seafarers make global trade possible and it is vital that we all work together to ensure their rights are protected.

The 2014 amendments to the MLC 2006, which comes under the auspices of the, are based on guidelines which were developed by a joint IMO/ILO working group, which reported to both IMO’s Legal Committee and ILO’s governing bodies.

Accordingly, the 2014 amendments to the MLC 2006 specify that a certificate or other documentary evidence of financial security has to be issued by the financial security provider of the shipowner and the said certificate has to be carried on board the ship.