Ship owners' liability towards crew members and their insurance cover for such claims

Abstract

A shipowner has to provide protection for his seafarers both when the seafarers are travelling to and from the vessel, and when they are onboard. This protection consists amongst other things of providing for medical help if the seafarer gets ill or injured, repatriation if the seafarer is notified of serious illness or death in the closest family and pay compensation for lost or damaged personal effects that the seafarer is bringing to the vessel. The rules and regulation for the shipowners liability towards the seafarer is found in the Seaman’s Act and in the collective wages agreements that are the working agreements for the seafarer.

For Norwegian seafarers the shipowner can get some of his liability covered under the Norwegian Social insurance. For liabilities not covered under other insurances the shipowner can get his liability towards the seafarer covered under his P&I insurance.

This thesis will first describe what kind of protection the shipowner is obliged to provide for his seafarers according to the Norwegian legislation and collective wages agreements. Further in the thesis it is discussed where the shipowner can seek coverage for this liability the shipowner has towards the seafarer.

Shipowners usually have P&I insurance that will cover his liability towards the crew onboard the vessels. But this insurance will not come into play if there are other insurances or Social Benefit Programs that will cover for the liability that the shipowner has.

In the thesis some cases will be looked at to see if there is to see if there is coverage under mandatory insurances through the collective wages agreements, to see if there is coverage through the Norwegian Social Benefit program or if there can be coverage through other insurances. If not then the rules of Skuld P&I Club will be looked at to see if the shipowner can seek cover for his liability towards the seafarer in the P&I Club.