High Risk and War Risk Bonus


CMM	Crew Management Manual (CMM) High Risk and War Risk Bonus	Doc No.: CMM-6.19 Revision: 01 Date: 15 Oct 2024 Issued by: DPA Approved by: MD

1. DEFINITION

The following definitions have been adopted by the Company:

The International Bargaining Forum (IBF)

The forum that brings together the International Transport Workers Federation (ITF) and the International Maritime Employers’ Committee (IMEC) and International Mariners Management Association of Japan (IMMAJ) that make up the Joint Negotiating Group (JNG), to reach an International Bargaining Agreement (IBA) to the Seafaring Contractual, Welfare and Benefits with Conditions.

IBF High Risk Area

An Area designated by IBF, pertaining to Piracy Threats, but limited to War Risk threats, in applying the additional bonus, insurance cover, and rights to the Seafarers when transiting a designated High Risk Area.

IBF Extended High-Risk Area

An extended Area of IBF High Risk Area by IBF as High Risk outside the pertaining to Piracy Threats, but limited to War Risk threats, in applying the additional bonus ONLY on any day which the Vessel is attacked, insurance cover, and rights to the Seafarers in making a transit to/through a designated High-Risk Areas.

High Risk Bonus

During the period of transit of the area designated as the IBF High Risk Area, each seafarer shall receive a bonus according to the recommendation of the International Bargaining Forum (IBF).

IBF War Risk Area

An Area designated by IBF as War Risk pertaining to War-like threats, but limited to Piracy Threats, in applying the additional bonus, insurance cover, and rights to the Seafarers in making a transit to/through a designated War Risk Area.

War Risk Bonus

During the period of transit of the area designated as the IBF War Risk Area, each seafarer shall receive a bonus according to the recommendation of the International Bargaining Forum (IBF).

JWC War Risk Area

An Area designated by the Joint War Risk Committee (JWC) which is formed through the Alliance of the International Insurers, designating & recommending the applicability of War Risk Insurance with Premium to the Maritime Insurance Industry, concentrating on the Ship & Cargo Insurance and to Ship Owner/Charterer in mitigating their risks.

Piracy

Piracy shall have the same meaning as in the United Nations Convention on the Law of the Sea, 1982;

Armed robbery against ships

Any illegal act of violence or detention or any act of depredation, or threat thereof, other than an act of piracy, committed for private ends and directed against a ship or against persons or property on board such a ship, within a State’s internal waters, archipelagic waters, and territorial sea, or any act of inciting or of intentionally facilitating an act described above.

2. COMPANY POLICY ON HIGH RISK BONUS AND WAR RISK BONUS

The Company has established the Policy to honour and comply with the payment and compensation, drawn by the International Standard through the International Bargaining Forum (IBF) and the conditions set in the Crew Bargaining Agreement (CBA) for the applicability to the IBF High Risk and IBF War Risk Bonus, or otherwise approved by the Ship Owner.

The company is not a member of IBF or ITF. However, as mentioned above, to honour our Seafarers, standard conditions and compensations similar to IBF with actual days of transit have been included in the Contract of Agreement (COE).

The Company is aware that some Seafaring Unions are issuing their own national conditions on the High Risk or War Risk Bonuses Claim and not setting or complying with the International standards through IBF or ITF recommendations, thus setting different conditions or standards from the IBF on the application of the High Risk or War Risk. Unless the Ship Owner otherwise approves this, the Company will not accept and will only honour and apply the conditions set by the COE.

3. BONUS REIMBURSABLE FROM CHARTERER

The Charterers will reimburse High Risk and War Risk Bonuses with any other additional costs to the Ship Owners, while the Owner will make payout normally in advance. Therefore, there must be an understanding that any payout made to the High Risk or War Risk Bonuses, are to be of the International Standard or otherwise agreed by the Owners and Charterers, while official documentation evidencing the payment is to be established to the Owner in allowing the claims to be made to the Charterer for reimbursement.

Additionally, Charterers may request for advance estimation on the bonuses paid from the Company to Ship.

4. APPLICATION FOR BONUS

The Ship must notify the FLP Dept (PIC) and the Company Security Officer (CSO)/ Alternate CSO in ample time on the intention to make an entry into an IBF High Risk Area, IBF extended High Risk Area or IBF War Risk Area. The following procedures apply thereafter:

Report and record the estimated and actual date/time ship has entered into the designated area, including the time the ship has exited from the area.
Make a request to the Crewing Dept (PIC) to confirm the calculation for the bonuses to the up-to-date IBF Circular on the High Risk or War Risk Bonus for any changes.
Calculate & establish the bonuses as per application form ADM17 ‘Application for Risk Bonus’ and submit to the Crewing Dept (PIC).
Crewing Dept (PIC) will approve for payment with approval from Ship Owner.
Crewing Dept (PIC) will instruct Accounts Department to allocate payment with the subsequent crews’ wages.

5. SEAFARERS’ WAGES AND ENTITLEMENTS WHILE HELD CAPTIVE ON OR OFF THE SHIP AS A RESULT OF ACTS OF PIRACY OR ARMED ROBBERY AGAINST THE SHIPS

The seafarer's employment agreement shall continue to have effect while a seafarer is held captive on or off the ship as a result of acts of piracy or armed robbery against ships, regardless of whether the date fixed for its expiry has passed or either party has given notice to suspend or terminate it.

The wages and entitlements under the seafarer’s employment agreement, relevant collective bargaining agreement or applicable national laws, including the remittance of any allotments, shall continue to be paid during the entire period of captivity and until the seafarer is released and duly repatriated, or where the seafarer dies while in captivity, until the date of death as determined in accordance with applicable national laws or regulations.