Blue cards in accordance with International maritime conventions

In spite of the fact that world trade tends to the globalization and unification of the rules, there are no common international demands for marine liability insurance. Each country establishes its own requirements to P&I cover of the vessels entering its waters and flying its flag.On the other side P&I Clubs and fixed premiums, P&I insurers have their conditions and rules without any unification with each other. Although there are certain widely recognized conditions of insurance for Hull and Machinery insurance like the Institute Time Clause (ITC), American Hull Clauses, Scandinavian Nordic Plan, German ADC ( DTV) and others, however there is nothing like that in Protection and Indemnity. That is why P&I insurance is unique and complicated for all parties engaged. However last decades there have been attempts to bring marine liability cover for certain risks to a common approach worldwide. Several maritime conventions adopted recently put obligations on P&I policies in connection with the following risks: Pollution by Bunker, Wreck removal and MLO ( Maritime Labour Convention 2006) conventions put measures for financial protection of vessels crew members.

These conventions imply minimum limits for risks mentioned above and establish procedures to hold the insurance cover in force. It is done by implementing so-called “ Blue cards” as evidence of the existence of cover and guaranteeing compliance with the minimal requirements of conventions.

For what risks Blue card to be issued?

The term “Blue card” is widely used not only in marine documentation but even in the shipping business it may mean not only obligatory documents, implemented by law but it acts as a kind of confirmation of compliance to some willful standards. ( For example with ITF requirements)

At present most widely the term Blue card is used in the maritime industry for certificates of confirmation of Insurance coverage for :

Pollution by leakage of ships bunker in compliance with requirements of Bunker Convention 2001
Wreck removal according to Nairobi International Convention on the Removal of Wrecks ( Wrecks Removal Conventions) 2007

Financial Protection of Crew by Maritime Labour Convention 2006 MLC:

Repatriation of crew according to Regulation 2.5, Standart A 2.5.2
Payments by contract for death or long-term disability Regulation 4.2, Standard A4.2.1 paragraph 1(b)

What is the procedure to get Blue cards?

It is rather easy: First of all, a vessel should have appropriate P&I insurance in force with the mentioned risks covered. (In order to get it please apply to our company here or fill out this form)If cover exists and fits under the requirements of conventions, P&I insurer issues a Blue card to the authorities of the Flag. In their turn, they issue their Certificate to the vessel which confirms that the requirements of a convention are complied. These certificates have to be on board the vessel.

This is important to understand: Blue Card is evidence of the cover for Flag Authorities only. Certificates required by conventions should be issued by State authorities.

Does every vessel need to have all four obligatory Certificates/ Blue cards?

No, but the solution for a particular vessel depends on the following: GT, Flag state and trading area

Let's look thoroughly into that

Gross Tonnage (GT)

MLC has no exemption based on the GT of the vessels

A Bunker Blue card is essential for vessels up from 1000 GT

Wreck Removal Blue card is needed for a vessel with 300 GT and more

Flag state

The vessel flying the flag of the state that adopted the convention should comply with the requirements of the convention. It means that flag authorities may insist on the issue of Blue cards and therefore existence of P&I insurance for certain risks.

Trading Area

If your vessels enter in EEZ of a state-adopted convention you should have a Certificate – Blue card as proof cover in place, even if your flag state does not participate in the conventions.In this case, any other state entitled to issue a certificate can do it. However, your P&I insurer should be approved by this state.Please note that within the limits of the territorial waters of each state the local legislation is applicable and conventions are void.

What are the limits?

Limits for the Bunker Convention and Wreck Removal Convention are according to LLMC76 with amendments. It means limits depend on the GT of a vessel.

Tips and tricks

When you take out P&I cover for your vessels please bear in mind whether you need Blue Cards/MLC Cards now or will need it in future. The scope of cover including limits has to fit convention requirements otherwise you will need to ask your P&I Insurer to extend the cover and an additional premium may be charged.
Please note that P&I Insurer should be approved by the authorities of your flag state, otherwise, flag state authorities will not issue a Certificate for your vessel.

NB! If your vessel flies rare and/ or unusual for marine industry flag please contact your broker to ensure that the Insurer is accepted by your flag state.

If your flag state has not adopted the convention it will not issue any certificate for you. In this case, you will need to apply to any other state which is a participant in a convention. Usually, it is actually for the Nairobi Wreck removal convention as it is not widespread so far.

NB You should advise your broker/ P&I Insurer to which flag authority you intend to apply for the certificate and therefore to what authority the Blue Card is to be issued

The cover to be in force at all times to keep holding the Certificates by complying with the condition and warranties of the policy, i.e. premium to be paid on time. Otherwise, the Blue card can be revoked by the Insurer by notification of the flag State directly. On the other side, authorities have started recently a new practice of asking Underwriters to verify the Blue card issued and in case there is no confirmation of validation from the approved Insurer Certificate will not be issued or cancelled by the Flag state.

Please do not hesitate to contact us if you have any questions We will be glad to help you and provide with cover for your vessels