C4.2.1.a. What is shipowners’ liability?

Regulation 4.2 and the Code requires flag States to ensure that all seafarers employed on their ships have material assistance and support from the shipowner with respect to the financial consequences of sickness, injury or death occurring while they are serving under a seafarers’ employment agreement or arising from the employment under such agreement. These financial consequences include loss of wages and also medical and other costs. These provisions complement the protection set out in Regulation 4.1 regarding medical care on board ship and ashore and the long-term protection under Regulation 4.5 regarding social security. Standard A4.2.1, paragraph 1(b), provides that each member State shall adopt laws and regulations requiring that shipowners of ships that fly its flag to provide financial security to assure compensation in the event of the death or long-term disability of seafarers due to an occupational injury, illness or hazard, as set out in national law, the seafarers’ employment agreement or collective agreement. The 2014 amendments to the Code added new provisions and a new standard under Regulation 4.2 (Standard A4.2.2 on the treatment of contractual claims), which details this mechanism [see C4.2.2.b.].

Shipowners’ liability