Section 19(10) in The Merchant Shipping (Maritime Labour) Rules, 2016
(10)The ship owner shall ensure that the system of financial security to assure compensation as provided in clause (b) of sub-rule (3) for contractual claims, meet the following minimum requirements, namely :-(a)the contractual compensation, as set out in the seafarers' employment agreement and without prejudice to clause (c) sub-rule (10), shall be paid in full and without delay;(b)there shall be no demand to accept a payment less than the contractual amount;(c)whereas the nature of the long-term disability of a seafarers makes it difficult to assess the full compensation to which the seafarers may be entitled, an interim payment shall be made to the seafarers so as to avoid undue hardship;(d)the seafarers shall receive payment in accordance with the provisions of sub-rule (3), without prejudice to other legal right, but such payment may other claim made by the seafarers against the ship owner and arising from the same incident; and(e)the claim for concerned compensation may be brought directly by the seafarers concerned, or their next of kin, or a representative of the seafarers or designated beneficiary.(f)the evidence of financial security shall be as per Form-2.
