When a seafarer dies at sea, the family is left with grief and a pile of questions. Who will pay? How much? Who do we even write to? The company is often far away, the ship is in another country, and the first calls come from people who want the matter closed quickly.
This guide sets out, step by step, how a family claims the compensation that is owed. It covers the money side only. The separate question of who is responsible for the death, and whether anyone should answer for it in a criminal court, is dealt with in our article Seafarer death or injury on board: who is liable?
Most Indian seafarers on foreign ships sail under a written employment agreement. Many are also covered by a collective agreement between a seafarers’ union and the shipowners. These documents usually fix a death compensation amount, and often extra amounts for children. The family does not have to prove that anyone was at fault to receive this contractual compensation.
The Maritime Labour Convention, 2006 (MLC) adds a further layer of protection. Under Regulation 4.2 and Standard A4.2.1, the shipowner must provide financial security to assure compensation in the event of a seafarer’s death or long-term disability due to an occupational injury, illness or hazard. In practice this security is usually given by the ship’s P&I club or another insurer.
One ship can involve several companies. There is the registered owner, a manager who runs the ship, sometimes a separate employer named in the contract, and the Indian manning agency that recruited the seafarer. Each may point to the other. Our guide Who is your real employer? explains how to work out who is who.
For the death claim, three names matter most:
A claim moves faster when the papers are ready. Collect as many of these as you can:
If the seafarer left documents at home before sailing, they will help now. Our document checklist lists what every seafarer should leave with the family.
Do not rely on phone calls. Write to the employer and the manning agency, and send a copy to the financial security provider named in the certificate. The letter should state who the seafarer was, the name of the ship, the date of death, the contract under which he served, and the amount claimed under that contract. Ask for a written reply within a fixed time, and keep proof of sending.
Under the MLC, the claim for contractual compensation can be made directly to the financial security provider by the seafarer’s next of kin, a representative or a designated beneficiary. The family does not have to wait for the shipowner to act.
The death compensation is the largest amount, but it is rarely the only one. The family should also ask for:
Families are often asked to sign a “receipt and release” or a “full and final settlement” when the money is paid. Read it carefully. A document that says the payment settles all claims against everyone can take away the family’s other rights.
The MLC protects the family here. Contractual compensation is to be paid in full and without delay, and there must be no pressure to accept a payment less than the contractual amount. If the amount offered is lower than the contract says, do not sign until you have taken advice. Sign a plain receipt for the money you actually receive, and nothing more.
Delays often come from inside the family, not from the company. Parents, the spouse and the children may all have a share, depending on the nomination and the law of succession that applies. Decide early who will deal with the company, and give that person written authority. A family that speaks with one voice is paid sooner.
Most claims are paid once the documents are in order. When they are not, the family has several options:
Every route has its own time limit. Some contracts and collective agreements also set short deadlines for making a claim. Do not wait for the company to finish its own inquiry before taking advice.
This article is for general information only. It does not constitute legal advice, and no lawyer-client relationship arises from it. Every claim turns on its own contract and facts. If your family is dealing with the death of a seafarer, please contact the firm directly.
For specific questions on a matter, rather than general commentary, please contact the firm directly.