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Insurance for local seafarers is now mandatory, according to the Maritime Industry Authority
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MARINA Memorandum Circular No. DS-2025-01 requires domestic shipowners/operators to provide the insurance
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The new policy aims to ensure seafarers working onboard a Philippine-registered ship in the domestic trade or their legal heirs or relatives, as the case may be, are able to obtain indemnification following a maritime accident/incident
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Exempted from the requirement are fishing vessels, warships and naval auxiliaries, rescue boats, ships owned or operated by government entities not engaged in commercial activities, and ships operated for private use
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A copy of the master policy evidencing the insurance cover will be part of requirements in the application for issuance/renewal/amendment of the shipping line’s Certificate of Public Convenience, including special permits and provisional authority
The Maritime Industry Authority (MARINA) is mandating domestic shipowners/operators to provide insurance for seafarers working in their vessels.
The new policy contained in MARINA Memorandum Circular (MC) No. DS-2025-01 aims to ensure seafarers working onboard a Philippine-registered ship in the domestic trade or their legal heirs or relatives, as the case may be, are able to obtain indemnification following a maritime accident/incident.
MC DS-2025-01, which prescribes the rules and regulations on the mandatory insurance of seafarers employed in domestic ships, applies to all owners/operators of Philippine-registered vessels operating in the domestic trade. MC DS-2025-01 takes effect 15 days after its publication on March 11.
Exempted from the requirement are fishing vessels, warships and naval auxiliaries, rescue boats, ships owned or operated by government entities not engaged in commercial activities, and ships operated for private use.
Under MC DS-2025-01, shipowners/operators should obtain and maintain insurance cover for all of their seafarers for accidental death, including burial assistance, and accidental permanent and partial/total dismemberment or disablement. The insurance cover should also provide for the seafarer’s entitlement to receive emergency assistance following a maritime accident/incident.
Stakeholders during consultations with MARINA last year opposed the then proposed policy. Philippine Inter-Island Shipping Association executive director Atty. Pedro Aguilar noted shipowners already provide statutory benefits equivalent to the insurance coverage the maritime authority wants to require.
He said stakeholders will agree to the policy only if existing statutory benefits provided by shipowners will be seen as having complied with the ruling.
Under MC DS-2025-1, any similar insurance coverage to health and life of the seafarers that are being provided by the shipping companies/operators would be deemed compliance to the new policy.
The minimum insurance coverage for each seafarer should be the following:
- Death—P200,000
- Burial assistance – P10,000
- Permanent and total disablement – P150,000
- Permanent and partial disablement – P100,000
- Emergency assistance – P50,000
The insurance should be at no cost to the seafarer, the MC said.
A copy of the master policy evidencing the insurance cover will be included as part of the requirements in the application for the issuance/renewal/amendment of the shipping line’s Certificate of Public Convenience, including special permits and provisional authority. The copy of the master policy will also be required prior to the issuance or renewal of safety certificates, and should be at all times made available for inspection on board the ship.
The availability of insurance benefits and the seafarers’ entitlement to the same should not be conditioned upon the compliance by the shipowner, its manager, operator, agent, contractor, office and/or employee with any and all terms and conditions of the insurance policy.
Shipowners/operators should also provide full assistance to the seafarers to ensure that they are able to obtain insurance indemnification without unnecessary delay from the insurer following a maritime accident/incident.
Violations to MC DS-2025-01 will be subject to fines and penalties depending on the ship size, ranging from P5,000 to P200,000, and may include suspension/non-issuance of safety certificate upon compliance.
As a transitory provision, the existing insurance coverage provided by the shipping companies/operators will remain valid and acceptable until renewal/amendment of the same aligning with MC DS-2025-01.
The requirement for shipowners/operators to provide a new/amended insurance coverage in accordance with MC DS-2025-01 is only required by MARINA upon approval of the master policy template by the Insurance Commission which shall be readily available within six months from the date of publication of the MC. – Roumina Pablo
