What it does
WC 00 02 03 (Ed. 4-84) adds Voluntary Compensation Maritime Insurance. For crew members of the vessels named in its Schedule, injured within the territorial limits of, or on vessels sailing between ports of, the continental U.S., Alaska, Hawaii or Canada, the insurer pays an amount equal to the benefits the designated compensation law would require if the employer and those employees were subject to it.
Key provisions
- Before payment: the injured person (or beneficiaries) must release the employer and insurer in writing, transfer recovery rights against others, and cooperate. If they refuse, or sue for damages, the duty to pay ends at once.
- Recovery: the insurer keeps recoveries up to its expenses and benefits paid and passes the balance to the claimant.
- Exclusions: obligations under an actual compensation law, and injury intentionally caused or aggravated by the employer.
- The Schedule names the vessels, the crew group and the designated law (a state act or the USL&H Act).
Who needs it
Maritime employers that write their crew coverage under Program II, which pairs Maritime Coverage (WC 00 02 01) employers liability with state or USL&H benefit levels. NCCI's instructions direct carriers to use this form, rather than the general voluntary compensation endorsement, for Program II.
Quoting and selling notes
Crew members keep their right to sue under maritime law; the voluntary offer is attractive only if the benefit level is adequate. Explain to the insured that the employers liability limits on WC 00 02 01 still matter. NCCI's classification system has separate Program II codes for state-act and USL&H benefit levels (for example Vessels NOC 7024 and 7047).
Related forms
Maritime WC 00 02 01; general voluntary compensation WC 00 03 11.
