Administrative Decision No. 1/2018

On the Compulsory Insurance Requirements Related to the Shipowners' Liabilities Towards Sailors in the State of the United Arab Emirates

As amended by

Federal Decision No. 95/2018 dated 26/12/2018

The Chairman of the Board of Directors,

Having perused the Federal Law No. 26/1981 on the Commercial Maritime Law, and its amending laws;

Federal Law No. 19/1993 on the delimitation of maritime zones in the UAE;

Cabinet Decision No. 52/2006 on the regulation of the Federal Authority for Land and Maritime Transport, and its amendments;

Administrative Decision No. 3/2012 on the Conditions of Granting Navigation Licences to National and Foreign Vessels operating in Territorial Waters;

Administrative Decision No. 30/2014 on the Conditions of Granting

Navigation Licences to National and Foreign Vessels operating in the State's Maritime Zones;

And according to the work requirements,

Decided:

Article 1 - Definitions

In applying the provisions of this Decision, the following terms and expressions shall have the meanings stated next to them, unless the context requires otherwise:

Warning: the following table is malformed, its content may be illegible.

State - The State of the United Arab Emirates.

Authority - Federal Authority for Land and Maritime Transport.

Shipowner - Registered owner as stated in the vessel's registration certificate or any entity or person responsible for the management or operating of the vessel instead of the owner, such as the vessel management company or the lessee in case of rent of “unequipped vessel”.

Sailor - Person bound by an employment contract on the vessel, and considered the helmsman of the Sailors with regard to the employment contract.

Desertion of the Sailor - The Shipowner severing the relationship with the Sailor before expiry of his employment contract and the Desertion thereof without ensuring his subsistence costs, such as housing, food, care and healthcare, deporting him to his home country and not paying his wages or contractual fees for a period of not less than two months.

Article 2 - Application

Article 2 was replaced by virtue of Article 1 of the Federal Decision No. 95/2018 dated 26/12/2018, to read as follows:

a- The provisions of this Decision shall apply to the owner or supplier of commercial vessel, as follows:

1- Vessels registered under the flag of the State.

2- Foreign commercial vessels holding a seafarer licence issued by the Authority.

3- Foreign commercial vessels reaching the ports of the State or anchored in its waters, including the exclusive economic waters.

b- The provisions of this Decision shall not apply to the maritime means of the ports of the State operating within its borders, and the wooden vessels.

Article 3 - Insurance Policy

Shipowners shall provide insurance coverage for every Sailor working on the vessel under an insurance policy covering the following insurance liabilities:

1- Deportation expenses and basic necessities' expenses such as food, care, healthcare, salaries due to the Sailors up to four months in case of Desertion of the Sailor according to the Regulation (2.5), standards ((A2.5.2 and guidelines (B.2.5) stated in the Maritime Labour Convention MLC 2006 and its amendments.

2- Compensation for death or long-term disability resulting from the occupational hazards set forth in the Maritime Labour Contract or the collective agreement contract according to Regulation (4.2), standards (4.2A) and guidelines (B4.2) of the Maritime Labour Convention MLC 2006 and its amendments.

Article 4 - Obligations of the Shipowners

1- The vessels stated in Article (2) Clause (1) and (2) shall obtain insurance service from suppliers approved by the Authority and provide the latter with a copy of the insurance policies' certificates within 7 days from the date of issuance of the certificate.

2- The vessels stated in Article (2) Clause (3) shall obtain insurance service from suppliers approved by the flag State of the vessel.

3- Ensuring that the insurance policy certificate of every Sailor includes the name of the Sailor, name of the first beneficiary or representative of the Sailor, or exclusive beneficiary of all Sailors working on the vessel insured in maritime labour contracts, in order to facilitate the process of payment of entitlements in the cases stated in Article (3) of this Decision.

4- Keeping all the insurance policies' certificates issued by all insurance companies on board of the vessel, in case of coverage through more than one insurance company.

5- Displaying copies of the insurance certificates in a clear place accessible by all Sailors on board of the vessel.

Article 5 - Termination or Cancellation of the Insurance Policy

1- The Shipowners stated in Article (2) Clause (1) and (2) of this Decision shall notify the Authority and every Sailor of the date of termination or cancellation of the insurance policy concluded with him according to the requirements of Article (3) of this Decision, (30) days before the cancellation or termination.

2- It shall be ensured that the Sailor, first beneficiary or his representative, or the exclusive beneficiary are not obliged to accept amounts less than those stated as compensation for death or injury causing long-term disability for the Sailor.

3- Upon payment of the entitlements related to death or long-term disability to the Sailor, the entity liable for the receipt of the entitlements shall verify the receipt voucher and the Shipowner shall provide the Authority with a copy within 30 days from the date of the voucher.

Article 6

The Authority shall keep a record and list of the names of approved entities to provide compulsory insurance service for the Sailors. The Director General shall update, publish and circulate this list to all those concerned in the State, whenever the need arises.

Article 7 - Control

1- The Authority shall carry out inspections on all the vessels subject to this Decision and make reports on the control procedures in order to ensure the application and enforcement of the provisions of this Decision.

2- In case of violation by any of the vessels set forth in Article (2) Clause (1) and (2) of Article 2 of this Decision, the Authority may suspend the navigation licence issued for such vessel.

3- The Authority may inspect any foreign vessel subject to the provisions of this Decision upon its presence at a port or in the waters of the State, in order to ensure that the vessel observes the provisions of this Decision. In case of violation, a warning shall be issued for that vessel to provide certificates of compulsory insurance for the Sailors. In case of repetition of the violation, the Authority may prevent the entry of the vessel to the ports or waters of the State.

Article 8

All that is contrary to the provisions of this Decision shall be abrogated, and this Decision shall come into force from the date of its publication in the Official Gazette.

Issued by us in Abu Dhabi:

On: 26 Rabi Al-Akhar 1439 H

Corresponding to January 14, 2018

Dr. Abdullah Bel Haif Al Nuaimi

Minister of Infrastructure Development

Chairman of the Board of the Federal Authority for Land and Maritime Transport

This Decision was published in the Official Gazette No. 626, P. 509.