18 January 2002 TO ALL MEMBERS Dear Sirs IMO/ILO - Resolutions and Guidelines Members are advised that at the 83 rd Session of the IMO Legal Committee in October 2001 it was agreed that two separate Resolutions and associated Guidelines relating to: -The Provision of Financial Security in the case of Abandonment of Seafarers; and -Shipowners’ Responsibilities in respect of Contractual Claims for Personal Injury to or Death of Seafarers should be recommended for adoption by the IMO Assembly and approval by the Governing Body of the ILO. Both organisations met in November 2001 when the Resolutions and Guidelines were adopted and approved. The drive to consider these issues in an international context and to formulate Resolutions and Guidelines has been led by the International Transport Workers’ Federation. The Resolutions and Guidelines were drafted by a Joint IMO/ILO Expert Working Group which was established for the purpose of: -assessing and evaluating the extent of the potential problems relating to liability and compensation in connection with seafarers’ claims for death, personal injury and abandonment -formulating suitable recommendations. The main elements of the two sets of Guidelines are as follows: (1)Resolution and Guidelines on Provision of Financial Security in case of Abandonment of Seafarers. -Shipowners should arrange financial security for seafarers in the event of abandonment and carry a certificate on board vessels attesting to the existence of such security. -Seafarers should have a direct right of action against the security. P.T.O. - 2 -The security should extend to: -costs of repatriation -maintenance of and expenses incurred by seafarers during abandonment -payment of outstanding remuneration -The minimum information to be included in the certificate. It was made plain in discussions relating to this issue that Group Clubs do not provide cover for crew maintenance, repatriation expenses or other risks arising out of abandonment by reason of insolvency. However, Clubs are investigating what alternative sources of financial security might be available to enable shipowners to comply with the Guidelines, if this proves necessary. (2)Resolution and Guidelines on Shipowners’ Responsibilities in respect of Contractual Claims for Personal Injury to or Death of Seafarers. -Shipowners should arrange effective insurance or other financial security in respect of their obligation to pay contractual compensation for death to and personal injury suffered by seafarers and carry a certificate on board vessels attesting to the existence of that security. -Valid claims should be paid promptly and in full. -The insurance should provide for: -prior notification to seafarers if the insurance is to be cancelled and immediate notification if it is not to be renewed -payment of all claims during the period for which the certificate is valid. -The minimum information to be included in the certificate. At meetings of various working groups in the past two years representatives of the Group Clubs and the ISF have argued that: -A dispassionate assessment of seafarers’ claims for death and personal injury, based on statistics provided by Group Clubs, clearly indicated that such claims do not give rise to significant problems. -Group Clubs handle seafarers’ claims fairly, efficiently and expeditiously. -IMO Resolution A.898 (21) and the accompanying Guidelines which had recently been adopted by the IMO (which provides that vessels should carry