{"id":3036,"date":"2026-10-05T12:41:02","date_gmt":"2026-10-05T12:41:02","guid":{"rendered":"https:\/\/www.legalbabu.com\/learn\/?p=3036"},"modified":"2026-10-05T12:41:06","modified_gmt":"2026-10-05T12:41:06","slug":"seafarer-monetary-loss-protection","status":"publish","type":"post","link":"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/","title":{"rendered":"Monetary Loss Protection for Seafarers: What Agencies Must Have"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>Seafarer monetary loss protection<\/strong> requires private seafarer recruitment and placement services to establish protection through insurance or an equivalent appropriate measure. It compensates seafarers for certain financial losses caused by a recruitment service or shipowner failing to meet obligations under the seafarer\u2019s employment agreement. Seafarers must also be told about their rights under this protection before or during engagement.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_87 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#What_is_seafarer_monetary_loss_protection_under_MLC_2006\" >What is seafarer monetary loss protection under MLC 2006?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Why_does_the_MLC_require_protection_against_monetary_loss\" >Why does the MLC require protection against monetary loss?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#What_does_the_protection_actually_respond_to\" >What does the protection actually respond to?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Who_must_establish_this_system_of_protection\" >Who must establish this system of protection?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#What_form_can_monetary_loss_protection_take\" >What form can monetary loss protection take?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Is_recruitment_agency_insurance_the_same_as_ordinary_business_insurance\" >Is recruitment agency insurance the same as ordinary business insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#What_rights_must_agencies_explain_to_seafarers\" >What rights must agencies explain to seafarers?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#When_should_the_agency_provide_this_information\" >When should the agency provide this information?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Is_monetary_loss_protection_the_same_as_abandonment_protection\" >Is monetary loss protection the same as abandonment protection?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Monetary_loss_protection_vs_abandonment_and_disability_security\" >Monetary loss protection vs abandonment and disability security<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Does_an_RPSL_bank_guarantee_automatically_replace_monetary_loss_protection\" >Does an RPSL bank guarantee automatically replace monetary loss protection?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#How_does_the_RPSL_bank_guarantee_relate_to_monetary_loss\" >How does the RPSL bank guarantee relate to monetary loss?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#What_should_an_agency_keep_as_proof_of_compliance\" >What should an agency keep as proof of compliance?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#What_should_an_agency_check_before_an_audit\" >What should an agency check before an audit?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#What_happens_if_the_protection_system_is_missing\" >What happens if the protection system is missing?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Can_a_seafarer_claim_money_directly_from_the_insurance_provider\" >Can a seafarer claim money directly from the insurance provider?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#What_should_an_agency_do_when_a_monetary-loss_claim_arises\" >What should an agency do when a monetary-loss claim arises?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Step_1_Record_the_complaint\" >Step 1: Record the complaint<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Step_2_Identify_the_obligation\" >Step 2: Identify the obligation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Step_3_Identify_the_responsible_party\" >Step 3: Identify the responsible party<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Step_4_Preserve_evidence\" >Step 4: Preserve evidence<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Step_5_Check_the_protection_mechanism\" >Step 5: Check the protection mechanism<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Step_6_Follow_the_applicable_claim_procedure\" >Step 6: Follow the applicable claim procedure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Step_7_Record_the_outcome\" >Step 7: Record the outcome<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#How_is_monetary_loss_different_from_unpaid_wages\" >How is monetary loss different from unpaid wages?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Does_the_protection_cover_losses_caused_by_the_recruitment_agency_itself\" >Does the protection cover losses caused by the recruitment agency itself?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#What_are_the_most_common_compliance_mistakes_agencies_should_avoid\" >What are the most common compliance mistakes agencies should avoid?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#1_Treating_any_insurance_as_MLC_protection\" >1. Treating any insurance as MLC protection<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#2_Forgetting_the_seafarer_information_requirement\" >2. Forgetting the seafarer information requirement<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-30\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#3_Mixing_different_financial-security_systems\" >3. Mixing different financial-security systems<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-31\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#4_Keeping_expired_documents\" >4. Keeping expired documents<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-32\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#5_Having_no_claim_procedure\" >5. Having no claim procedure<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-33\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#6_Relying_on_outdated_Indian_rules\" >6. Relying on outdated Indian rules<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-34\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#What_should_seafarers_ask_a_recruitment_agency_about_financial_protection\" >What should seafarers ask a recruitment agency about financial protection?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-35\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#Does_this_requirement_apply_when_the_recruitment_agency_is_in_a_non-ratifying_country\" >Does this requirement apply when the recruitment agency is in a non-ratifying country?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-36\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#How_does_this_requirement_fit_into_wider_RPSL_compliance_in_India\" >How does this requirement fit into wider RPSL compliance in India?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-37\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#What_recent_Indian_financial-security_changes_should_RPSL_companies_know\" >What recent Indian financial-security changes should RPSL companies know?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-38\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#FAQs\" >FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-39\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#1_Does_every_seafarer_recruitment_agency_need_monetary_loss_protection\" >1. Does every seafarer recruitment agency need monetary loss protection?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-40\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#2_Does_MLC_2006_specify_a_particular_insurance_company_for_monetary_loss_protection\" >2. Does MLC 2006 specify a particular insurance company for monetary loss protection?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-41\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#3_Can_an_agency_use_its_normal_business_insurance_for_MLC_monetary_loss_protection\" >3. Can an agency use its normal business insurance for MLC monetary loss protection?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-42\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#4_Does_monetary_loss_protection_cover_a_seafarers_unpaid_salary\" >4. Does monetary loss protection cover a seafarer&#8217;s unpaid salary?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-43\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#5_What_should_a_seafarer_do_if_an_agency_refuses_to_explain_its_financial_protection\" >5. What should a seafarer do if an agency refuses to explain its financial protection?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-44\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#6_Does_a_seafarer_have_to_pay_for_the_agencys_monetary_loss_insurance\" >6. Does a seafarer have to pay for the agency&#8217;s monetary loss insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-45\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#7_Does_the_monetary-loss_system_protect_a_seafarer_if_the_shipowner_becomes_unable_to_meet_its_obligations\" >7. Does the monetary-loss system protect a seafarer if the shipowner becomes unable to meet its obligations?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-46\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#8_Is_a_bank_guarantee_the_same_thing_as_MLC_insurance\" >8. Is a bank guarantee the same thing as MLC insurance?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-47\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#9_When_must_an_agency_tell_a_seafarer_about_monetary-loss_protection\" >9. When must an agency tell a seafarer about monetary-loss protection?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-48\" href=\"https:\/\/www.legalbabu.com\/learn\/seafarer-monetary-loss-protection\/#10_Does_monetary_loss_protection_replace_abandonment_or_death_and_disability_financial_security\" >10. Does monetary loss protection replace abandonment or death and disability financial security?<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_seafarer_monetary_loss_protection_under_MLC_2006\"><\/span><strong>What is seafarer monetary loss protection under MLC 2006?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"409\" data-src=\"https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Insurance-Claim-Process-1-1024x409.png\" alt=\"MLC monetary loss protection process for seafarers\" class=\"wp-image-3037 lazyload\" data-srcset=\"https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Insurance-Claim-Process-1-1024x409.png 1024w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Insurance-Claim-Process-1-300x120.png 300w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Insurance-Claim-Process-1-768x307.png 768w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Insurance-Claim-Process-1-1536x614.png 1536w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Insurance-Claim-Process-1-1200x480.png 1200w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Insurance-Claim-Process-1-1980x792.png 1980w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Insurance-Claim-Process-1.png 1983w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/409;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">Seafarer monetary loss protection is a financial protection system required for private seafarer recruitment and placement services under <strong>Standard A1.4(5)(c)(vi) of the Maritime Labour Convention, 2006<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The system must use <strong>insurance or an equivalent appropriate measure<\/strong> to compensate seafarers for monetary loss they may suffer when a recruitment and placement service or the relevant shipowner fails to meet its obligations under the seafarer\u2019s employment agreement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The <a href=\"https:\/\/www.ilo.org\/international-labour-standards\/maritime-labour-convention-2006\" rel=\"nofollow noopener\" target=\"_blank\">MLC <\/a>does not prescribe one fixed insurance product or one standard policy format. Convention leaves the exact form of the protection to the national regulatory system, referring to insurance or an equivalent measure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This matters for agencies because simply having an internal promise to reimburse a seafarer is not the same as establishing the protection system required by the applicable national framework.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For an Indian RPSL company, the MLC requirement must also be read alongside the applicable Indian recruitment and placement rules and <a href=\"https:\/\/dgma.gov.in\/\" rel=\"nofollow noopener\" target=\"_blank\">DGMA <\/a>requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_does_the_MLC_require_protection_against_monetary_loss\"><\/span><strong>Why does the MLC require protection against monetary loss?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A seafarer can suffer financial harm when an agency or shipowner fails to perform an obligation connected with the employment agreement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, imagine a seafarer accepts a job, completes the required engagement process and joins a vessel. The shipowner later fails to meet an obligation under the employment agreement, leaving the seafarer with an unpaid entitlement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A monetary-loss protection system provides a route for compensation where the loss falls within the applicable protection.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The ILO explains that the term &#8220;monetary loss&#8221; is not specifically defined in the Convention. It refers to financial loss suffered by a seafarer as a result of breaches of obligations under the seafarer\u2019s employment agreement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_does_the_protection_actually_respond_to\"><\/span><strong>What does the protection actually respond to?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The protection is connected to failures by:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The recruitment and placement service<\/li>\n\n\n\n<li>The relevant shipowner<\/li>\n\n\n\n<li>A party that has failed to meet its obligations under the seafarer\u2019s employment agreement<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The exact claim process, scope and form of the protection depend on the national system implementing Standard A1.4.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That distinction is important. The MLC establishes the international requirement, while the country regulating the recruitment and placement service determines how that requirement operates through its laws, regulations or other measures.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Who_must_establish_this_system_of_protection\"><\/span><strong>Who must establish this system of protection?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The requirement applies to <strong>private seafarer recruitment and placement services<\/strong> operating within the territory of an MLC Member that regulates such services.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Under Standard A1.4, the Member must ensure that private recruitment and placement services establish the required system of protection. The Member itself does not simply become the insurer or compensation provider.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead, the national system must regulate the recruitment and placement services and require them to maintain the appropriate protection.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This fits into the wider MLC framework governing <strong>seafarer recruitment and placement<\/strong>. LegalBabu&#8217;s MLC certification page explains the wider compliance obligations for recruitment and placement services, including fair recruitment practices, records, complaints and related requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_form_can_monetary_loss_protection_take\"><\/span><strong>What form can monetary loss protection take?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The MLC gives two broad options:<\/p>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Protection method<\/strong><\/td><td><strong>What the MLC says<\/strong><\/td><\/tr><tr><td>Insurance<\/td><td>The recruitment and placement service can establish protection through insurance<\/td><\/tr><tr><td>Equivalent appropriate measure<\/td><td>Another suitable protection mechanism may be used if it meets the applicable requirements<\/td><\/tr><tr><td>Fixed MLC insurance policy<\/td><td>The MLC does not prescribe one universal policy<\/td><\/tr><tr><td>National implementation<\/td><td>The competent national system determines how the requirement is regulated<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The ILO FAQ specifically states that the MLC does not specify the form of the system beyond referring to insurance or an equivalent measure.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">So an agency should avoid assuming that any ordinary business insurance automatically satisfies Standard A1.4.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The better approach is to identify the applicable national requirement, confirm what protection the competent authority accepts and keep documentary evidence showing that the system is in place.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_recruitment_agency_insurance_the_same_as_ordinary_business_insurance\"><\/span><strong>Is recruitment agency insurance the same as ordinary business insurance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Not necessarily. An agency may already carry professional indemnity insurance, general liability insurance or other commercial policies. Those policies should not automatically be treated as the MLC monetary-loss protection system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The relevant question is whether the protection satisfies the applicable national implementation of Standard A1.4 and covers the type of monetary loss contemplated by the requirement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For compliance purposes, the agency should be able to show:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>What protection mechanism it maintains.<\/li>\n\n\n\n<li>Which entity provides the protection.<\/li>\n\n\n\n<li>What losses the protection covers.<\/li>\n\n\n\n<li>Which seafarers are covered.<\/li>\n\n\n\n<li>When the protection applies.<\/li>\n\n\n\n<li>How a seafarer can make a claim.<\/li>\n\n\n\n<li>How long the protection remains valid.<\/li>\n\n\n\n<li>What evidence proves that the protection remains active.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">That documentation becomes particularly useful during audits, inspections or a dispute involving a seafarer.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_rights_must_agencies_explain_to_seafarers\"><\/span><strong>What rights must agencies explain to seafarers?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The 2022 amendment added an important requirement. Seafarers must be informed, <strong>prior to or in the process of engagement<\/strong>, of their rights under the monetary-loss protection system maintained by the recruitment and placement service.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The ILO&#8217;s 2026 FAQ confirms this directly and explains that the requirement was expressly added through the 2022 amendment to Standard A1.4(5)(c)(vi).<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In practice, an agency should make the information easy for a seafarer to understand.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A useful information sheet can explain:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>That monetary-loss protection exists.<\/li>\n\n\n\n<li>What type of losses may be covered.<\/li>\n\n\n\n<li>Who provides the protection.<\/li>\n\n\n\n<li>Who can make a claim.<\/li>\n\n\n\n<li>How to start a claim.<\/li>\n\n\n\n<li>What documents may be required.<\/li>\n\n\n\n<li>Where the seafarer can raise a complaint.<\/li>\n\n\n\n<li>Any applicable time limits or procedural requirements.<\/li>\n\n\n\n<li>Whom the seafarer can contact for assistance.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The agency should also retain evidence that this information was provided.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"When_should_the_agency_provide_this_information\"><\/span><strong>When should the agency provide this information?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The timing matters.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The requirement says <strong>prior to or in the process of engagement<\/strong>. It should therefore form part of the agency&#8217;s recruitment and engagement workflow rather than being treated as information that can be supplied months later.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A practical compliance file could contain:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Signed acknowledgement<\/li>\n\n\n\n<li>Engagement documentation<\/li>\n\n\n\n<li>Information sheet<\/li>\n\n\n\n<li>Employment agreement records<\/li>\n\n\n\n<li>Claim procedure<\/li>\n\n\n\n<li>Evidence of the active protection system<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">This creates a clear audit trail.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Is_monetary_loss_protection_the_same_as_abandonment_protection\"><\/span><strong>Is monetary loss protection the same as abandonment protection?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"512\" data-src=\"https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Financial-Protection-Comparison-1-1024x512.png\" alt=\"Difference between monetary loss and abandonment financial security\" class=\"wp-image-3038 lazyload\" data-srcset=\"https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Financial-Protection-Comparison-1-1024x512.png 1024w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Financial-Protection-Comparison-1-300x150.png 300w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Financial-Protection-Comparison-1-768x384.png 768w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Financial-Protection-Comparison-1-1536x768.png 1536w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Financial-Protection-Comparison-1-1200x600.png 1200w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Financial-Protection-Comparison-1.png 1774w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/512;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">No. They are separate financial protection systems. The monetary-loss protection under Standard A1.4 is different from the financial security system dealing with <strong>abandonment and death or long-term disability<\/strong> introduced through the 2014 amendments to the MLC.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The ILO states that seafarers hired through a recruitment and placement agency must be covered by <strong>both systems<\/strong> in practice.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Monetary_loss_protection_vs_abandonment_and_disability_security\"><\/span><strong>Monetary loss protection vs abandonment and disability security<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<figure class=\"wp-block-table is-style-stripes\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Point<\/strong><\/td><td><strong>Monetary loss protection<\/strong><\/td><td><strong>Abandonment\/death\/disability financial security<\/strong><\/td><\/tr><tr><td>Main MLC area<\/td><td>Regulation 1.4, recruitment and placement<\/td><td>Regulation 2.5 and related provisions<\/td><\/tr><tr><td>Main purpose<\/td><td>Protect against specified monetary loss<\/td><td>Protect against abandonment and qualifying death or long-term disability situations<\/td><\/tr><tr><td>Who is involved<\/td><td>Recruitment\/placement service and relevant shipowner<\/td><td>Primarily shipowner-related financial security obligations<\/td><\/tr><tr><td>Protection method<\/td><td>Insurance or equivalent appropriate measure<\/td><td>Financial security meeting the applicable MLC requirements<\/td><\/tr><tr><td>Seafarer information<\/td><td>Rights must be explained before or during engagement<\/td><td>Separate information and documentary requirements apply<\/td><\/tr><tr><td>Are they interchangeable?<\/td><td>No<\/td><td>No<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A recruitment agency should therefore avoid describing one financial security document as if it automatically satisfies every MLC protection requirement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_an_RPSL_bank_guarantee_automatically_replace_monetary_loss_protection\"><\/span><strong>Does an RPSL bank guarantee automatically replace monetary loss protection?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">This requires care. The MLC itself says that monetary-loss protection may be established through <strong>insurance or an equivalent appropriate measure<\/strong>, but it does not prescribe a universal form.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">India&#8217;s regulatory framework may use financial security mechanisms that address monetary loss and related obligations. LegalBabu&#8217;s current guide on <strong>RPSL bank guarantee requirements<\/strong> explains that the 2026 rules provide for a bank guarantee and identify monetary loss among the circumstances in which it may be invoked.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That does not mean every bank guarantee everywhere is automatically an MLC-compliant monetary-loss system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The correct question is:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Does the financial security mechanism required under the applicable national rules provide the protection required by Standard A1.4?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For an Indian RPSL company, the agency should follow the current DGMA requirements rather than relying on a generic insurance policy or an outdated understanding of the rules.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Related reading:<\/strong> LegalBabu&#8217;s <a href=\"https:\/\/www.legalbabu.com\/learn\/bank-guarantee-and-fee-for-rpsl-companies\/\">RPSL bank guarantee requirements<\/a> explain the current 2026 framework, including when a bank guarantee may be invoked for monetary loss.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_the_RPSL_bank_guarantee_relate_to_monetary_loss\"><\/span><strong>How does the RPSL bank guarantee relate to monetary loss?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Under the current Indian RPSL framework covered by LegalBabu&#8217;s 2026 guidance, monetary loss is one of the situations connected with invocation of the bank guarantee.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The current rules cover outstanding wages or other entitlements owed under the seafarer&#8217;s employment agreement or applicable collective bargaining agreement where the recruitment and placement service or shipowner fails to meet its obligations. The current LegalBabu guide also explains the complaint steps associated with a monetary-loss claim.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This creates an important practical connection between the international MLC requirement and India&#8217;s national regulatory framework.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, agencies should keep the concepts separate in their compliance records:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>MLC requirement \u2192 national implementation \u2192 financial protection mechanism \u2192 seafarer information \u2192 claim procedure \u2192 evidence<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That chain is easier to audit than simply keeping a document labelled &#8220;insurance&#8221; or &#8220;bank guarantee.&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_should_an_agency_keep_as_proof_of_compliance\"><\/span><strong>What should an agency keep as proof of compliance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"512\" data-src=\"https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Compliance-Checklist-Infographic-2-1-1024x512.png\" alt=\"MLC monetary loss protection compliance checklist for agencies\" class=\"wp-image-3039 lazyload\" data-srcset=\"https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Compliance-Checklist-Infographic-2-1-1024x512.png 1024w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Compliance-Checklist-Infographic-2-1-300x150.png 300w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Compliance-Checklist-Infographic-2-1-768x384.png 768w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Compliance-Checklist-Infographic-2-1-1536x768.png 1536w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Compliance-Checklist-Infographic-2-1-1200x600.png 1200w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Compliance-Checklist-Infographic-2-1.png 1774w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/512;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A good compliance file should allow an auditor to answer three questions quickly:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Is the protection active?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Does it cover the relevant seafarers and risks?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Were seafarers informed of their rights?<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A practical checklist includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Current insurance policy or equivalent financial-security document<\/li>\n\n\n\n<li>Certificate or evidence of validity<\/li>\n\n\n\n<li>Terms and scope of protection<\/li>\n\n\n\n<li>Name of the provider or issuing institution<\/li>\n\n\n\n<li>Renewal records<\/li>\n\n\n\n<li>Claim procedure<\/li>\n\n\n\n<li>Internal procedure for handling seafarer claims<\/li>\n\n\n\n<li>Evidence that seafarers receive information about their rights<\/li>\n\n\n\n<li>Engagement records<\/li>\n\n\n\n<li>Seafarer acknowledgements, where applicable<\/li>\n\n\n\n<li>Complaint records<\/li>\n\n\n\n<li>Evidence of corrective action<\/li>\n\n\n\n<li>Records of payments or settlements arising from claims<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">LegalBabu&#8217;s current guide on <strong>RPSL company responsibilities<\/strong> also covers recordkeeping, employment agreements, cost allocation, complaints and financial-security responsibilities that agencies need to manage as part of their wider compliance system.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_should_an_agency_check_before_an_audit\"><\/span><strong>What should an agency check before an audit?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Use this quick internal test:<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Financial protection<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Is the protection currently valid?<\/li>\n\n\n\n<li>Does it meet the applicable national requirement?<\/li>\n\n\n\n<li>Has it expired or been cancelled?<\/li>\n\n\n\n<li>Are renewal dates recorded?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Seafarer information<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Are seafarers told about their rights?<\/li>\n\n\n\n<li>Is the information provided before or during engagement?<\/li>\n\n\n\n<li>Can the agency prove that it was provided?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Claims<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Is there a documented claims process?<\/li>\n\n\n\n<li>Does staff know where a seafarer should submit a claim?<\/li>\n\n\n\n<li>Are previous claims recorded and resolved?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Records<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Can the agency identify which seafarers were covered?<\/li>\n\n\n\n<li>Are relevant employment records available?<\/li>\n\n\n\n<li>Can the agency produce the financial protection documents quickly?<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_happens_if_the_protection_system_is_missing\"><\/span><strong>What happens if the protection system is missing?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The consequences depend on the national law and regulatory framework governing the recruitment and placement service.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The MLC requires Members to regulate private recruitment and placement services through laws, regulations or other measures. The ILO FAQ does not prescribe one universal penalty for an agency that fails to maintain the required protection.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For an Indian RPSL company, non-compliance can have consequences under the applicable RPSL framework.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">LegalBabu&#8217;s current <strong>RPSL annual compliance guide<\/strong> notes that violations of RPSL requirements can lead to regulatory action, including suspension or cancellation of an RPSL licence in serious cases.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The safest approach is to treat monetary-loss protection as a continuing compliance obligation, rather than something to arrange only when an audit is approaching.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Can_a_seafarer_claim_money_directly_from_the_insurance_provider\"><\/span><strong>Can a seafarer claim money directly from the insurance provider?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The MLC does not provide one universal claims process.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The exact procedure depends on the national system and the form of protection established by the recruitment and placement service.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An agency should therefore avoid telling seafarers that they can automatically approach an insurer directly unless the applicable policy and national rules actually provide for that route.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead, the agency should give the seafarer clear written instructions explaining:<\/p>\n\n\n\n<ol class=\"wp-block-list\">\n<li>Where the complaint or claim begins.<\/li>\n\n\n\n<li>Which documents are needed.<\/li>\n\n\n\n<li>Who receives the claim.<\/li>\n\n\n\n<li>What role the recruitment agency has.<\/li>\n\n\n\n<li>What role the shipowner has.<\/li>\n\n\n\n<li>What escalation route is available.<\/li>\n<\/ol>\n\n\n\n<p class=\"wp-block-paragraph\">Clear instructions can prevent a relatively simple financial dispute from becoming a larger compliance issue.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_should_an_agency_do_when_a_monetary-loss_claim_arises\"><\/span><strong>What should an agency do when a monetary-loss claim arises?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"409\" data-src=\"https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Claims-Process-Infographic-1-1024x409.png\" alt=\"Seafarer monetary loss claim process under MLC 2006\" class=\"wp-image-3040 lazyload\" data-srcset=\"https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Claims-Process-Infographic-1-1024x409.png 1024w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Claims-Process-Infographic-1-300x120.png 300w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Claims-Process-Infographic-1-768x307.png 768w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Claims-Process-Infographic-1-1536x614.png 1536w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Claims-Process-Infographic-1-1200x480.png 1200w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Claims-Process-Infographic-1-1980x792.png 1980w, https:\/\/www.legalbabu.com\/learn\/wp-content\/uploads\/2026\/10\/Maritime-Claims-Process-Infographic-1.png 1983w\" data-sizes=\"(max-width: 1024px) 100vw, 1024px\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" style=\"--smush-placeholder-width: 1024px; --smush-placeholder-aspect-ratio: 1024\/409;\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">A practical internal process can look like this:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_1_Record_the_complaint\"><\/span><strong>Step 1: Record the complaint<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Record the seafarer&#8217;s name, vessel, employment agreement, recruitment details and description of the alleged financial loss.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_2_Identify_the_obligation\"><\/span><strong>Step 2: Identify the obligation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Check the seafarer&#8217;s employment agreement and any applicable collective bargaining agreement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The purpose is to establish what obligation was allegedly not met.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_3_Identify_the_responsible_party\"><\/span><strong>Step 3: Identify the responsible party<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Determine whether the issue concerns the recruitment and placement service, the shipowner or another party involved in fulfilling the employment agreement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_4_Preserve_evidence\"><\/span><strong>Step 4: Preserve evidence<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Keep relevant employment records, wage records, communications, agreements, payment records and other supporting documents.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_5_Check_the_protection_mechanism\"><\/span><strong>Step 5: Check the protection mechanism<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Confirm which insurance or equivalent financial-security arrangement applies and whether the circumstances fall within its scope.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_6_Follow_the_applicable_claim_procedure\"><\/span><strong>Step 6: Follow the applicable claim procedure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Use the process established under the applicable national rules and the financial protection mechanism.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_7_Record_the_outcome\"><\/span><strong>Step 7: Record the outcome<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Document the decision, payment, rejection, settlement or corrective action.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This process also helps the agency demonstrate that it takes seafarer complaints seriously.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_monetary_loss_different_from_unpaid_wages\"><\/span><strong>How is monetary loss different from unpaid wages?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Unpaid wages can be an example of financial loss, but agencies should not treat every unpaid amount as automatically covered without checking the applicable protection mechanism.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The relevant question is whether the amount represents a financial loss resulting from a failure to meet an obligation under the seafarer&#8217;s employment agreement and whether the applicable national protection system covers that loss.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The current Indian RPSL framework specifically addresses outstanding wages and other entitlements in connection with monetary-loss claims involving the recruitment and placement service or shipowner.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is why maintaining accurate employment and payment records matters.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_the_protection_cover_losses_caused_by_the_recruitment_agency_itself\"><\/span><strong>Does the protection cover losses caused by the recruitment agency itself?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The MLC specifically refers to monetary loss resulting from the failure of a recruitment and placement service <strong>or the relevant shipowner<\/strong> to meet obligations under the seafarer&#8217;s employment agreement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Therefore, the system is not limited to mistakes made by the shipowner.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An agency should examine its own recruitment and placement procedures for situations that could create financial loss for a seafarer.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Examples could include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Failure to meet a relevant contractual obligation<\/li>\n\n\n\n<li>Failure in the recruitment or placement process<\/li>\n\n\n\n<li>Mishandling an obligation that results in a financial loss<\/li>\n\n\n\n<li>Failure to carry out an agreed responsibility connected with the engagement<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The precise coverage still depends on the applicable national framework and protection mechanism.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_most_common_compliance_mistakes_agencies_should_avoid\"><\/span><strong>What are the most common compliance mistakes agencies should avoid?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_Treating_any_insurance_as_MLC_protection\"><\/span><strong>1. Treating any insurance as MLC protection<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">A general insurance policy does not automatically prove compliance.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_Forgetting_the_seafarer_information_requirement\"><\/span><strong>2. Forgetting the seafarer information requirement<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Maintaining financial protection is only part of the requirement. Seafarers must also be informed of their rights under the system before or during engagement.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"3_Mixing_different_financial-security_systems\"><\/span><strong>3. Mixing different financial-security systems<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Monetary-loss protection, abandonment protection and death or long-term-disability financial security have different purposes.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"4_Keeping_expired_documents\"><\/span><strong>4. Keeping expired documents<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">An agency may have once arranged appropriate protection but fail to renew it.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"5_Having_no_claim_procedure\"><\/span><strong>5. Having no claim procedure<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Staff should know what happens when a seafarer reports a financial loss.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"6_Relying_on_outdated_Indian_rules\"><\/span><strong>6. Relying on outdated Indian rules<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">RPSL requirements can change. LegalBabu&#8217;s current 2026 coverage of <strong>RPSL responsibilities and bank guarantees<\/strong> should be read alongside the latest applicable regulatory requirements.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_should_seafarers_ask_a_recruitment_agency_about_financial_protection\"><\/span><strong>What should seafarers ask a recruitment agency about financial protection?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A seafarer does not need to understand insurance law to ask useful questions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Before accepting an engagement, ask:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>What financial protection applies to me?<\/li>\n\n\n\n<li>Who provides that protection?<\/li>\n\n\n\n<li>What type of monetary loss can I claim?<\/li>\n\n\n\n<li>How do I make a claim?<\/li>\n\n\n\n<li>Who should receive my complaint?<\/li>\n\n\n\n<li>What documents should I keep?<\/li>\n\n\n\n<li>What financial security applies if the shipowner fails to meet its obligations?<\/li>\n\n\n\n<li>Where can I find the written information about my rights?<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">The MLC specifically requires seafarers to be informed of their rights under the monetary-loss protection system before or during engagement.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If an agency cannot clearly explain the applicable protection and complaint route, that is a useful compliance warning sign.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Does_this_requirement_apply_when_the_recruitment_agency_is_in_a_non-ratifying_country\"><\/span><strong>Does this requirement apply when the recruitment agency is in a non-ratifying country?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The MLC FAQ explains that when a shipowner uses a recruitment and placement service located in a country where the MLC does not apply, the shipowner must ensure, as far as practicable, that the service meets the requirements of Standard A1.4. Documentary evidence such as audits or certifications may assist with demonstrating compliance.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This makes financial protection relevant even when the recruitment service is outside an MLC ratifying country.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For international shipowners, checking the recruitment agency&#8217;s financial protection should therefore form part of due diligence.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Related reading:<\/strong> See LegalBabu&#8217;s guide to the <a href=\"https:\/\/www.legalbabu.com\/mlc-2006-certification\/\">MLC 2006 certification process<\/a> for the broader recruitment and placement compliance framework.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_does_this_requirement_fit_into_wider_RPSL_compliance_in_India\"><\/span><strong>How does this requirement fit into wider RPSL compliance in India?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Monetary-loss protection is one part of a much wider compliance system.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">An RPSL company also needs to manage matters such as:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Seafarer records<\/li>\n\n\n\n<li>Employment agreements<\/li>\n\n\n\n<li>Qualification and document verification<\/li>\n\n\n\n<li>Recruitment practices<\/li>\n\n\n\n<li>Complaints<\/li>\n\n\n\n<li>Repatriation<\/li>\n\n\n\n<li>Financial security<\/li>\n\n\n\n<li>Cost allocation<\/li>\n\n\n\n<li>Welfare obligations<\/li>\n\n\n\n<li>Reporting requirements<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">LegalBabu&#8217;s current guide on <a href=\"https:\/\/www.legalbabu.com\/learn\/rpsl-company-responsibilities\/\">RPSL company responsibilities<\/a> covers these obligations under the 2026 Indian framework.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The agency should therefore treat financial protection as part of its daily compliance system rather than a standalone insurance purchase.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_recent_Indian_financial-security_changes_should_RPSL_companies_know\"><\/span><strong>What recent Indian financial-security changes should RPSL companies know?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The 2026 Indian RPSL rules introduced revised bank guarantee requirements, including provisions relating to monetary loss. LegalBabu&#8217;s current <a href=\"https:\/\/www.legalbabu.com\/learn\/bank-guarantee-and-fee-for-rpsl-companies\/\">RPSL bank guarantee guide<\/a> explains the current framework and the circumstances in which the guarantee may be invoked.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There is also a separate recent regulatory development concerning P&amp;I insurance verification for <a href=\"https:\/\/www.indosearch.in\/rpsl\/\" rel=\"nofollow noopener\" target=\"_blank\">RPSL companies<\/a> deploying Indian seafarers on foreign-flag vessels. LegalBabu has covered this in its guide to <a href=\"https:\/\/www.legalbabu.com\/learn\/dgma-rpsl-insurance-rules-2026\/\">DGMA Order 22 and RPSL insurance requirements<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These mechanisms should be reviewed separately because each serves a particular regulatory purpose.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1791170939970\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"1_Does_every_seafarer_recruitment_agency_need_monetary_loss_protection\"><\/span><strong>1. Does every seafarer recruitment agency need monetary loss protection?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Private seafarer recruitment and placement services are required to establish the protection under the applicable national implementation of Standard A1.4. The MLC requires insurance or an equivalent appropriate measure but leaves the detailed form to the national regulatory system.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1791170943790\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"2_Does_MLC_2006_specify_a_particular_insurance_company_for_monetary_loss_protection\"><\/span><strong>2. Does MLC 2006 specify a particular insurance company for monetary loss protection?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No. The MLC does not name a particular insurer or prescribe one universal insurance product. It refers to insurance or an equivalent appropriate measure. The national regulatory system determines how the requirement is implemented.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1791170945027\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"3_Can_an_agency_use_its_normal_business_insurance_for_MLC_monetary_loss_protection\"><\/span><strong>3. Can an agency use its normal business insurance for MLC monetary loss protection?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Not automatically. The agency must check whether the policy actually satisfies the applicable national requirements for the Standard A1.4 protection system. Ordinary commercial insurance should not be treated as compliant without checking its scope and acceptance.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1791170946640\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"4_Does_monetary_loss_protection_cover_a_seafarers_unpaid_salary\"><\/span><strong>4. Does monetary loss protection cover a seafarer&#8217;s unpaid salary?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>It can cover financial loss arising from failure to meet obligations under the seafarer&#8217;s employment agreement, subject to the applicable protection system. India&#8217;s current RPSL framework specifically addresses outstanding wages and other entitlements in its monetary-loss provisions.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1791170947883\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"5_What_should_a_seafarer_do_if_an_agency_refuses_to_explain_its_financial_protection\"><\/span><strong>5. What should a seafarer do if an agency refuses to explain its financial protection?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Ask the agency for written information about the protection system, your rights under it and the applicable claim procedure. Keep your employment agreement, payment records and communications. If the issue remains unresolved, use the applicable complaint mechanism.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1791170949597\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"6_Does_a_seafarer_have_to_pay_for_the_agencys_monetary_loss_insurance\"><\/span><strong>6. Does a seafarer have to pay for the agency&#8217;s monetary loss insurance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The MLC&#8217;s monetary-loss protection is an obligation imposed through the regulatory framework for private recruitment and placement services. It should not be confused with the separate rules governing which recruitment-related costs may be borne by a seafarer.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1791170951045\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"7_Does_the_monetary-loss_system_protect_a_seafarer_if_the_shipowner_becomes_unable_to_meet_its_obligations\"><\/span><strong>7. Does the monetary-loss system protect a seafarer if the shipowner becomes unable to meet its obligations?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The MLC specifically requires protection for monetary loss that may result from the failure of the recruitment and placement service or the relevant shipowner to meet obligations under the seafarer&#8217;s employment agreement. The exact claim scope depends on the applicable national protection system.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1791170952403\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"8_Is_a_bank_guarantee_the_same_thing_as_MLC_insurance\"><\/span><strong>8. Is a bank guarantee the same thing as MLC insurance?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Not necessarily. The MLC allows an &#8220;equivalent appropriate measure&#8221; rather than prescribing insurance in every case. Whether a particular bank guarantee satisfies the applicable MLC requirement depends on the national regulatory framework. India&#8217;s current RPSL rules contain specific bank guarantee provisions, including monetary-loss situations.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1791170953709\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"9_When_must_an_agency_tell_a_seafarer_about_monetary-loss_protection\"><\/span><strong>9. When must an agency tell a seafarer about monetary-loss protection?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>The 2022 amendment requires the seafarer to be informed of their rights under the protection system <strong>prior to or in the process of engagement<\/strong>.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1791170964011\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"10_Does_monetary_loss_protection_replace_abandonment_or_death_and_disability_financial_security\"><\/span><strong>10. Does monetary loss protection replace abandonment or death and disability financial security?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No. The ILO expressly distinguishes the two systems. Seafarers hired through recruitment and placement agencies must, in practice, be covered by both the monetary-loss protection system and the financial security system addressing abandonment and death or long-term disability.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Seafarer monetary loss protection requires private seafarer recruitment and placement services to establish protection through insurance or an equivalent appropriate measure. It compensates seafarers for certain financial losses caused by a recruitment service or shipowner failing to meet obligations under the seafarer\u2019s employment agreement. Seafarers must also be told about their rights under this protection [&hellip;]<\/p>\n","protected":false},"author":5,"featured_media":3041,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[30],"tags":[229,226,231,230,228,227],"class_list":["post-3036","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-compliance","tag-financial-security-vs-monetary-loss","tag-inform-seafarers-of-rights","tag-mlc-2006-recruitment-agency","tag-recruitment-agency-insurance-mlc","tag-seafarer-monetary-loss-protection","tag-system-of-protection-against-monetary-loss"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.legalbabu.com\/learn\/wp-json\/wp\/v2\/posts\/3036","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.legalbabu.com\/learn\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.legalbabu.com\/learn\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.legalbabu.com\/learn\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.legalbabu.com\/learn\/wp-json\/wp\/v2\/comments?post=3036"}],"version-history":[{"count":1,"href":"https:\/\/www.legalbabu.com\/learn\/wp-json\/wp\/v2\/posts\/3036\/revisions"}],"predecessor-version":[{"id":3042,"href":"https:\/\/www.legalbabu.com\/learn\/wp-json\/wp\/v2\/posts\/3036\/revisions\/3042"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.legalbabu.com\/learn\/wp-json\/wp\/v2\/media\/3041"}],"wp:attachment":[{"href":"https:\/\/www.legalbabu.com\/learn\/wp-json\/wp\/v2\/media?parent=3036"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.legalbabu.com\/learn\/wp-json\/wp\/v2\/categories?post=3036"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.legalbabu.com\/learn\/wp-json\/wp\/v2\/tags?post=3036"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}