No. 3 of 2017/Rev.3 - MARITIME LABOUR CONVENTION, 2006 – COMPULSORY FINANCIAL SECURITY REQUIREMENTS RELATING TO REPATRIATION OF ABANDONED SEAFARERS AND WORK INJURY COMPENSATION/REV.3

MARITIME AND PORT AUTHORITY OF SINGAPORE

SHIPPING CIRCULAR

NO. 3 OF 2017/REV.3

MPA Shipping Division

460 Alexandra Road

#21-00, PSA Building

Singapore 119963

Tel: +65 6375 6224

Fax: +65 6375 6231

www.mpa.gov.sg

Originally published on 4 January 2017

Revised on 23 January 2017, 11 July 2017, 28 March 2019

Applicable to: Shipowners, ship managers and operators, agents, masters, chief

engineers and seafarers of Singapore-registered ships, classification societies,

insurers and the general shipping community

MARITIME LABOUR CONVENTION, 2006 – COMPULSORY FINANCIAL

SECURITY REQUIREMENTS RELATING TO REPATRIATION OF ABANDONED

SEAFARERS AND WORK INJURY COMPENSATION/REV.3

 Merchant Shipping (Maritime Labour Convention) Act 2014

 Merchant Shipping (Maritime Labour Convention) (Financial Security)

Regulations 2017

 Merchant Shipping (Maritime Labour Convention) (Forms, Certificates and

Fees) Regulations 2014

Introduction

1. This circular provides information on the Maritime and Port Authority of

Singapore’s (MPA) requirements to provide compulsory financial security under

Section 34A of the Merchant Shipping (Maritime Labour Convention) Act 2014, to meet

the requirements of Regulation 2.5 and Regulation 4.2 of the Maritime Labour

Convention, 2006 (MLC). This circular is to be read together with MPA Shipping

Circular No. 22 of 2016, dated 13 October 2016.

1. Ships as described in Section 3 of the Merchant Shipping (Maritime Labour

Convention) Act 2014 (No. 6 of 2014) (MLC ships)1 will be required, from 18 January

2017, to carry on board certificates attesting that contracts of insurance or other

financial security are in place to cover shipowners’ liabilities for

1 This includes MLC ships of less than 500 gross tonnage.

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a. outstanding wages and repatriation in accordance with MLC Regulation 2.5,

Standard A2.5.2 and Guideline B2.5; and

b. compensation for death or long-term disability in accordance with MLC

Regulation 4.2, Standard A4.2 and Guideline B4.2.

1. Where more than one financial security provider provides cover in respect of

the MLC ship, the certificates provided by each financial security provider must be

carried on board.

1. Shipowners must display copies of such certificates in a conspicuous place on

board their MLC ships where it is available to the seafarers.

1. The required information to be set out in such certificates can be found at

Annex A. The certificates must be in English and if not in English, must be

accompanied by an English translation.

1. The certificates of the contracts of insurance or other financial security may be

inspected by port State control officers.

Approved financial security providers

1. Shipowners must obtain the contracts of insurance or other financial security

for the abovementioned liabilities only from financial security providers that have been

approved by MPA. The list of financial security providers that have been approved by

MPA can be found at Annex B. This list may be revised from time to time without

notice.

1. Shipowners must provide copies of the certificates of the contracts of insurance

or other financial security to MPA for MPA’s records. Scanned or electronic copies of

such certificates must be submitted to MPA via email (mmo@mpa.gov.sg) not later

than 7 days after the shipowner receives the certificates from the approved financial

security provider. Shipowners may wish to arrange for their approved financial security

providers to send copies of such certificates directly to MPA. These certificates do not

need to be endorsed by MPA.

1. The contract of insurance or other financial security must not cease before the

end of its period of validity unless the approved financial security provider has given

at least 30 days’ prior written notice to MPA. In the event of the above, shipowners are

advised to promptly provide a plan to MPA on how financial security for their liabilities

will continue to be provided for their seafarers. This plan should also be communicated

to their seafarers.

1. Shipowners are advised to have their seafarers name in their seafarer’s

employment agreement their next of kin, or a representative of the seafarer or

designated beneficiary for the purpose of facilitating any claims for the

abovementioned liabilities.

Contracts of insurance or other financial security for liabilities relating to

compensation for death or long-term disability

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1. Shipowners must give at least 30 days’ prior notice to their seafarers before the

cancellation or termination of any contract of insurance or other financial security

relating to compensation for death or long-term disability.

1. The approved financial security provider must notify MPA in writing of any

cancellation or termination of any contract of insurance or other financial security

relating to compensation for death or long-term disability at least 30 days before such

cancellation or termination.

1. A seafarer, or his next of kin, or his representative or designated beneficiary

must not be pressured to accept a payment of an amount less than any compensation

for death or long-term disability due to the seafarer.

1. Parties to the payment of the compensation for death or long-term disability

must use the Model Receipt and Release Form set out in Annex C. Shipowners must

provide a copy of the signed form to MPA for MPA’s records. Scanned or electronic

copies of such signed forms must be submitted to MPA via email (mmo@mpa.gov.sg)

not later than 30 days after the form has been completed.

1. Shipowners that have obtained contracts of insurance or other financial security

from an approved financial security provider relating to compensation for death or

long-term disability do not need to obtain separate insurance or other financial security

under the Work Injury Compensation Act (Cap. 354).

1. Any queries regarding this circular should be directed to the Seafarers

Management Department (Email: mmo@mpa.gov.sg; Tel: +65 6375 6224).

CAPT DAKNASH GANASEN

DIRECTOR OF MARINE

MARITIME AND PORT AUTHORITY OF SINGAPORE

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