Insurance for yacht crew: what the owner must cover under MLC and what crew should check

On a yacht covered by the Maritime Labour Convention (MLC), the owner must pay your medical treatment, board and lodging and wages if you fall ill or are injured in service, and must hold financial security for death, long-term disability and abandonment. Private health insurance is not required by the MLC; it covers what the owner's liability does not.

Below is what the convention and the flag states say, with the source for each point. National rules can add to these minimums.

Does this apply to your yacht?

Only if the yacht is covered by the MLC. The convention applies to ships ordinarily engaged in commercial activities; where it is unclear whether a category of ship is covered, the flag state's authority decides (MLC, Article II(4) and (5)). Flags differ on yachts:

• Marshall Islands: the notice on abandonment, death and long-term disability cover expressly excludes pleasure yachts (RMI, MN 7-052-3).
• Cayman Islands: a yacht engaged in trade does not receive a Certificate of Compliance unless the relevant MLC provisions are confirmed, irrespective of size (CISR, CIGN 04/2023 Rev 01).
• Malta: we were not able to check the Maltese rules for this article.

We also found no MCA statement on private yachts for this topic. How private and charter use differ for crew is covered in private or charter yacht.

What must the owner pay if you fall ill or are injured?

The owner bears the costs of sickness and injury from the day you start duty until you are duly repatriated (MLC, Standard A4.2.1(1)(a)). That includes:

• medical treatment and medicines, plus board and lodging away from home until you recover or the condition is declared permanent (MLC, A4.2.1(1)(c)); under UK rules this covers surgical, medical, dental and optical treatment, including repair or replacement of appliances (MCA, MGN 480 Amendment 3, 5.1)
• full wages while you remain on board or until you are repatriated (MLC, A4.2.1(3)(a)); the guideline allows these to exclude bonuses (MLC, Guideline B4.2.1)
• wages in whole or in part after you are landed, as national law or a collective agreement sets out (MLC, A4.2.1(3)(b))
• burial costs if you die on board or ashore during the engagement (MLC, A4.2.1(1)(d))

National law may limit the treatment and wage liability, but to no less than 16 weeks from the injury or the start of the sickness (MLC, A4.2.1(2) and (4)). It may also exclude the owner's liability for injury not incurred in the service of the ship, for wilful misconduct and for an illness deliberately concealed when you signed on (MLC, A4.2.1(5)).

The UK uses exactly that floor:

Source for the table: (MCA, MGN 480 Amendment 3, 3.2, 3.4 and 4.1).

What financial security must the owner hold?

Two kinds. For death or long-term disability due to an occupational injury, illness or hazard, the owner must provide financial security for compensation (MLC, A4.2.1(1)(b)). For repatriation and abandonment, every flag state must require it (MLC, Regulation 2.5(2)). Both obligations have applied since 18 January 2017 (Norwegian Maritime Authority).

• The security can be a social security scheme, insurance, a national fund or a similar arrangement (MLC, A2.5.2(3)). In the UK it is in most cases insurance or mutual P&I cover (MGN 480 Amendment 3, 2.3). The Isle of Man does not accept self-insurance (IoM Ship Registry, MLN 7.0 Rev. 1).
• You count as abandoned if, among other things, the owner fails to pay contractual wages for at least two months (MLC, A2.5.2(2)(c)).
• Under UK rules the abandonment cover must include repatriation and up to four months of unpaid wages (MGN 480 Amendment 3, 2.8.1). We have this figure from the MCA, not verbatim from the convention text we checked.
• Repatriation costs cover appropriate and expeditious travel, normally by air, with food, accommodation, medical care and transport of personal effects (MLC, A2.5.2(10)). The Isle of Man takes "home" to mean your residential address, not just your country (MLN 7.0 Rev. 1).

How fast must claims be paid?

Contractual compensation for death or long-term disability must be paid in full and without delay, and you, your next of kin, a representative or a named beneficiary can claim it directly (MLC, A4.2.1(8)). The UK sets deadlines (MGN 480 Amendment 3, 2.7.1 and 2.8.2):

• compensation within 14 days of the provider accepting that the owner is liable
• in abandonment, a decision within 7 days of receiving the claim and assistance within 14 days

According to the P&I insurer The Shipowners' Club (FAQ from 2019), payments to seafarers under these certificates are not subject to deductibles (Shipowners' Club).

Which documents should you look for on board?

A copy of the certificate of financial security must be posted in a conspicuous place on board where crew can see it (MLC, A4.2.1(11)). It must be in English or come with an English translation (MLC, A2.5.2(7)), and it names, among other things, the ship, the provider, the contact for claims and the period of validity (MLC, Appendix A4-I).

• The convention requires the certificate on board for ships that need a Maritime Labour Certificate, which applies from 500 GT on international voyages (MLC, A2.5.2(6) and Regulation 5.1.3). The Isle of Man applies the display rule to all Manx ships covered by the MLC (MLN 7.0 Rev. 1).
• In the UK, failing to display it is an offence by the owner and the master (SI 2018/667, reg. 53G(5)).
• The Cayman Islands list both certificates among the documents a commercial yacht carries (CISR, Yachtmaster's Handbook 2018). The Marshall Islands generally issue two certificates, one for abandonment and one for death and disability (RMI, MN 7-052-3). The Bahamas accept them in electronic form if every crew member has access to the system (BMA, Marine Notice 43).
• The provider can end cover early only after giving the flag state at least 30 days' notice (MLC, A4.2.1(12)). The Bahamas also require the owner to tell the crew at least 30 days in advance (BMA, Marine Notice 43).

According to the Shipowners' Club, certificates are issued by the insurer, not the flag state, usually run for one year from 20 February and can be checked through the clubs' vessel search (Shipowners' Club).

What does the owner's cover not include?

It is tied to your employment. The MLC's purpose is protection from the financial consequences of sickness, injury or death in connection with your employment (MLC, Regulation 4.2), for the period from the start of duty until you are duly repatriated (MLC, A4.2.1(1)(a)). Illness or injury that has nothing to do with that period falls outside these rules.

According to the Shipowners' Club, the abandonment security also does not pay for replacement crew or for running the yacht with a reduced crew (Shipowners' Club).

What do private crew health policies offer?

We found no official rule that requires yacht crew to hold their own health insurance, and no official source on what such policies must contain. What follows are the insurers' own descriptions, not checked terms:

We did not check Bupa Global, Allianz Care or other providers, so this is not a market overview. Pay, contract and repatriation rights are covered in MLC 2006 for yacht crew, and costs crew carry themselves in what yacht crew pay themselves.

Sources

Maritime Labour Convention 2006 as amended (ILO), UK MCA (MGN 480 Amendment 3), UK SI 2018/667, Isle of Man Ship Registry (MLN 7.0 Rev. 1), Bahamas Maritime Authority (Marine Notice 43), Marshall Islands Registry (MN 7-052-3), Cayman Islands Shipping Registry (CIGN 04/2023, Yachtmaster's Handbook), Norwegian Maritime Authority; insurer statements from The Shipowners' Club, Pantaenius and BCBS Global Solutions. All checked on 4 October 2026 and linked above.