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Prohibition of certain terms and conditions in financial security contract

Merchant Shipping (Maritime Labour Convention) (Financial Security) Regulations 2017

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—(1) A financial security contract must not contain any term or condition —(a)that provides that no liability arises under the financial security contract in any of the circumstances set out in paragraph (2);(b)that provides that any liability arising under the financial security contract ceases in any of the circumstances set out in paragraph (2);(c)that limits or excludes any liability arising from the shipowner’s obligation to repatriate the seafarer in accordance with section 23 of the Act;(d)that excludes any liability arising from the shipowner’s obligation under section 35 of the Act for the costs of medical treatment in respect of any sickness or injury;(e)that limits any liability arising from the shipowner’s obligation under section 35 of the Act for the costs of medical treatment in respect of any sickness or injury to an amount lower than the minimum compensation payable under section 35(1) of the Act;(f)that excludes any liability of the shipowner arising under section 36 of the Act for the loss of wages in respect of any sickness or injury; or(g)that limits any liability of the shipowner arising under section 36 of the Act for the loss of wages in respect of any sickness or injury to an amount lower than the minimum compensation payable in accordance with section 36(2) and (3) of the Act.(2) The circumstances mentioned in paragraph (1)(a) and (b) are as follows:(a)some specified thing being done, or omitted to be done, after the occurrence of the event giving rise to a claim under the financial security contract;(b)the shipowner failing to take reasonable care to protect seafarers against the risk of bodily injury or disease in the course of their employment;(c)the shipowner failing to comply with the requirements of any written law for the protection of seafarers against the risk of bodily injury or disease in the course of their employment;(d)the shipowner failing to keep specified records or provide the approved financial security provider with information from specified records;(e)any seafarer employed by the shipowner being engaged in a specified kind or description of work or activity, or being engaged in work or activity under specified conditions relating to the nature, scope, environment, processes or procedures of the work or activity, at the time of the occurrence of the event giving rise to a claim under the financial security contract.(3) A financial security contract for repatriation must not contain any term or condition —(a)that provides that payment of a claim to a seafarer is subject to justification or evidence of entitlement to all claims made by that seafarer; or(b)that provides that payment of any part of a claim to a seafarer is subject to justification or evidence of entitlement to the whole of that claim.(4) Any term or condition contained in a financial security contract in breach of paragraph (1) or (3) is to be treated as having no effect.

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