Insurance Coverage for Seafarers – Safety, Responsibility & Global Standards

Insurance Coverage for Seafarers

International Standards, Shipowners’ Obligations, and Crew ProtectionThe maritime profession has always been considered high-risk. Working at sea involves physical strain, isolation, and exposure to unpredictable environments. For this reason, insurance coverage for seafarers is not merely a benefit — it is a legal, financial, and moral obligation that ensures the safety and dignity of every crew member serving at sea.

1. International Legal Framework

The main international instrument governing this issue is the Maritime Labour Convention (MLC 2006) adopted by the International Labour Organization (ILO).
According to Regulation 4.2 — Shipowner’s Liability, every shipowner must provide financial security covering:

• illness, injury, or death of a seafarer arising from employment;

• repatriation of the seafarer or their remains;

• compensation for loss of earnings or permanent disability;

• medical treatment until full recovery or repatriation.

Each vessel must carry a Certificate of Financial Security, issued by a recognized P&I Club or insurer, proving compliance. Without it, the ship cannot lawfully operate under the flag of any state that has ratified the MLC.

2. Types of Seafarer Insurance

1. P&I (Protection and Indemnity) Insurance — covers shipowners’ liability towards crew and third parties for death, injury, illness, and repatriation costs.

2. Personal Accident Insurance (PAI) — individual accident coverage for seafarers during service or travel to the vessel.

3. Loss of Life Insurance — lump-sum payment to the next of kin in the event of a fatality at sea.

4. Medical & Hospitalization Coverage — provides free medical treatment and hospitalization until recovery.

5. War Risk Insurance — covers incidents related to war, piracy, terrorism, or operations in high-risk zones.

Most shipowners use a combined insurance scheme, blending P&I protection with local insurance policies to meet MLC and flag-state requirements.

3. Shipowners’ Obligations and Seafarers’ Rights

Shipowners are obliged to:

• maintain valid insurance for the entire duration of employment;

• provide each seafarer with a copy of the insurance certificate;

• ensure no insurance costs are deducted from seafarers’ wages;

• inform crew about coverage limits and claims procedures.

Seafarers, in turn, have the right to:

• receive medical care and compensation without delay;

• know the details of their insurance policy;

• claim benefits through unions or legal representation if obligations are breached;

• retain protection even after a change of ownership if the same contract remains in force.

4. Insurance Claims and Practical Cases

Typical insured events include:

• injuries on board — falls, burns, fractures, hearing or vision loss;

• diseases contracted during voyages;

• death resulting from accident or illness;

• medical evacuation or emergency repatriation;

• loss of life while performing duties on the way to or from the ship.

The insurer must cover medical and transport expenses and pay compensation to the family if the incident is confirmed as work-related.

5. Collective Bargaining and Union Protection

The International Transport Workers’ Federation (ITF) and national maritime unions ensure compliance with these obligations.
Standard ITF/IBF Collective Bargaining Agreements (CBAs) provide minimum guarantees:

• death while on duty — USD 60 000 – 120 000;

• permanent disability — up to 100 % of insured sum;

• repatriation and funeral costs — covered by the shipowner;

• medical treatment and wage replacement — up to 130 days.

If these terms are violated, unions may file claims through ITF inspectors or initiate detention of the vessel under port-state control.

6. Current Challenges and Trends

Although coverage is widespread, challenges remain:

• delayed payments due to complex investigations;

• lack of crew awareness about policy terms;

• fake or unregistered insurance intermediaries;

• inconsistent standards for mixed-nationality crews.

A new trend is the inclusion of mental-health and wellbeing programs, addressing stress, fatigue, and post-traumatic conditions — increasingly recognized as part of seafarers’ health coverage.

7. The Importance of Effective Insurance

Insurance coverage for seafarers is more than compliance — it is the foundation of trust, safety, and human responsibility in the maritime industry.
It reflects a company’s integrity, professionalism, and respect for those who work at sea.For every seafarer, insurance means confidence that their life and family are protected — even far from home.

Conclusion

A robust insurance system for seafarers combines international standards, legal responsibility, and corporate ethics.
It ensures that those who dedicate their lives to work at sea are safeguarded, valued, and supported.
Ultimately, insurance is not just a financial tool — it is a moral commitment to protect every life that serves the sea.