COMPULSORY INSURANCE FOR SHIP'S CREW

Mr Lim Boon Heng asked the Minister for Communications and Minister for Labour, in view of the environmental risks peculiar to seafarers, if he will consider making it compulsory for shipowners and/or operators of ships (i) to insure the crew in respect of accidental bodily injury or death occurring on board the ship; and (ii) to compensate the crew for loss of personal effects arising from loss of vessel or fire on board the ship.

Mr Ong Teng Cheong: Mr Speaker, Sir, at present, it is already made compulsory for shipowners to insure the crew in respect of accidental bodily injury or death occurring on board ships. All seafarers earning up to $1,250 per month are entitled to compensation under the Workmen's Compensation Act. However, those seafarers who are performing manual work are still covered by the Act even though they may be earning more than $1,250 per month. Finally, there is a class of seafarers who earn more than $1,250 p.m. and who are not doing manual work, such as shipmasters, engineers and other officers who are not entitled to compensation under the Act. For these sea-farers, the Marine Department has, since August this year, required shipowners to take out insurance coverage separately for them. This is done by incorporating it as a clause in the crew agreements signed between ship-owners and their employees in respect of Singapore flag ships. Such crew agreements have to be approved by the Marine Department.

As regards compensation to crew for loss of personal effects arising from loss of vessel or fire on board ships, the Marine Department has also required shipowners to take out insurance coverage against possible loss in the crew agreements.

So far these arrangements have been found satisfactory.