J-14 Incidents Involving 3rd Party Injury (Supp A and B) Processing Claims v2.pdf

SECTION J – LIST OF

DOCUMENTS, EXHIBITS

AND OTHER

ATTACHMENTS

J.3a Processing Seafarers’ Personal Injury/Illness Claims (Supplement A)

2016 Ship Manager Contract

HQAM 29 APR 2019

J.3a Processing Seafarers’ Personal Injury/Illness Claims (Supplement A)

This document supplements the requirements identified in C.2.5.1.1, C.5.5, and G.9 CLAIMS AND REPORTS, of the Contract.

CONTENTS

Contents

Overview

Section 1. Documentation on Seafarers’ Initial Engagement

1.1. Determination of Fitness for Sea Duty

1.1.1. Standard Documentation of Seafarer’s Fitness for Sea Duty

1.2. Statement of Physical Condition

1.3. Release of Union Medical Records

1.4. Seafarer Data Sheet (Form 1001A)

1.5. Particulars of Engagement and Discharge (Form CG-705A)

1.6. Prior Illness and Injury Report

Section 2. Documentation of Seafarer Illnesses and Injuries

2.1. Required Logs

2.1.1. Medical Log

2.1.2. Official Logbook

2.2. Initial Report of Personal Illness or Injury

2.2.1. Examination by Medical Person-in-Charge (MPIC)

2.2.2. Statement of Individual Reporting Injury (Form MA-1001D)

2.3. Shore Side Medical Attention

2.4. Investigations of Serious Injuries

2.4.1. Investigating Officer’s Responsibilities

2.4.2. U.S. Coast Guard Forms 2692 and 2692B

2.4.3. Physical and Photographic Evidence

Section 3. Personal Injury Report Package

Section 4. Processing Seafarers’ Benefits

4.1. Traditional Seafarers’ Benefits

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4.1.1. Maintenance and Cure

4.1.2. Unearned Wages

4.1.3. Repatriation Expenses and Other Miscellaneous Benefits/Expenses

4.2. Processing Payment of Traditional Seafarers’ Benefits

Section 5. Administrative Claims

5.1. Claim Procedure

5.1.1. What Additional Information May Be Provided to Expedite Claim Processing?

5.2. Processing Administrative Claims

5.2.1. Receipt and Acknowledgement of Submissions

5.2.2. Response to Improper Claim

5.2.3. Task Order and Calculation of Estimated Reserve Against Claim

Section 6. Claims Which Proceed to Litigation

Section 7. Ship Manager’s Quarterly Report

Appendix

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J.3a Processing Seafarers’ Personal Injury/Illness Claims (Supplement A)

2016 Ship Manager

OVERVIEW

This attachment sets forth the responsibilities of the Ship Manager with respect to illness or injuries sustained by officers and crew members (“Seafarers”) when the possibility exists that they occurred while employed on vessels owned by the Maritime Administration (MARAD), United States Department of Transportation (DOT). Section 1. describes the documentation and procedures that must be observed to collect a Seafarer’s medical history and other information on or before the date the Seafarer joins a vessel. Section 2. describes the procedures applicable in the event a Seafarer is injured or becomes ill and such illness or injury may have occurred while employed on the vessel. The documentation described in these sections must be compiled into a Personal Injury Report Package as set forth in Section 3.

Section 4. outlines the process by which Ship Managers should pay ill or injured Seafarers certain traditional benefits to be reimbursed by MARAD. Section 5. describes the Ship Manager’s responsibility to assist MARAD in the processing of administrative claims filed by an ill or injured Seafarer, and Section 6. discusses the Ship Manager’s responsibilities with respect to claims that proceed to litigation. Finally, Ship Managers are required to provide a quarterly report of all incidents where a Seafarer is found Not Fit For Duty (NFFD) for a period of at least twenty-four (24) contiguous hours, as set forth in Section 7.

Section 1. DOCUMENTATION ON SEAFARERS’ INITIAL ENGAGEMENT

In the event a Seafarer becomes ill or is injured and such illness or injury may have occurred while employed on a vessel, the Ship Manager must ensure that a complete Personal Injury Report Package (Section 3. ) is prepared and sent to MARAD within fourteen (14) calendar days after the Ship Manager knows of the occurrence. A complete Personal Injury Report Package must include, among other things, those medical records that are generated upon a Seafarer’s initial engagement. Accordingly, the Ship Manager must observe the following procedures and ensure that all documentation is properly maintained.

1.1. Determination of Fitness for Sea Duty

1.1.1. STANDARD DOCUMENTATION OF SEAFARER’S FITNESS FOR SEA DUTY

The Ship Manager shall ensure the Seafarer has, within the six (6) months preceding engagement, been examined by a licensed physician and found to be physically qualified and fit to perform the duties of the Seafarer’s assignment. Upon reporting aboard vessel, the Seafarer shall provide or otherwise make available for the Master's examination the following items and documentation:

(1) The union shipping slip, if the Seafarer is a member of a Seafarers’ union;

(2) A Merchant Mariner Physical Examination, documented on Form CG-719K (Exhibit 18), indicating the Seafarer is competent and fit for sea duty from a medical clinic sponsored by the Ship Manager, or from the union of which the Seafarer is a member or from the

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J.3a Processing Seafarers’ Personal Injury/Illness Claims (Supplement A)

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Seafarer's personal physician, as provided by USCG NVIC 04-08, “Medical and Physical Evaluation Guidelines for Merchant Mariner Credentials”;

(3) A certification from a medical clinic that the Seafarer has received all required immunizations/inoculations, as provided by Section C.5.4.7 of the Contract, or is medically eligible to receive such immunizations;

(4) At least two (2) pairs of any required prescription eye glasses (in addition to contact lenses, if worn); (5) Records and prescriptions of any prescription medications as well as an adequate supply of same to cover the projected assignment period; and

(5) Immunization and medical records.

1.2. Statement of Physical Condition

The Ship Manager shall require the Seafarer to complete MARAD Form 1001B, “Seafarer’s Statement of Physical Condition” (Exhibit 3) as soon as practicable after the Seafarer joins the vessel to which assigned. This brief questionnaire requests the Seafarer to identify any medical conditions or symptoms of illness with which the Seafarer is or has been affected. By signing and dating this form, the Seafarer certifies that, to the best of the Seafarer’s knowledge, he or she is physically and mentally fit for sea duty. This form shall be completed notwithstanding the existence of any available report of pre-employment physical examination. A copy of the form will be sent to the Ship Manager’s crew personnel office and retained with appropriate safeguards. The original form is to be retained aboard the vessel for the duration of the Seafarer's shipboard employment. Upon the termination of the Seafarer’s employment aboard the vessel, the completed form shall be forwarded to the Ship Manager’s home office.

At any point in time, including the day the Seafarer reports for duty, the Ship Manager may require the Seafarer to undergo examination by a licensed physician designated by the Ship Manager to ascertain the Seafarer's fitness to perform the duties associated with the shipboard rating to which assigned if a) the Ship Manager believes that the Seafarer’s Statement of Physical Condition indicates the Seafarer may have significant limitations on his or her ability to perform the duties of the Seafarer’s assignment, b) the Ship Manager has reason to believe at any point in time, including the day the Seafarer reports for duty, that the Seafarer has falsified any information regarding his or her current physical condition or medical history; or c) that the Seafarer is otherwise unfit to assume the duties of the Seafarer’s assignment. Charges for services provided by any physician, clinic or hospital, in connection with such examination are to be paid by the Ship Manager as an expense to be reimbursed by MARAD. Any determination made by a physician with respect to the Seafarer’s fitness for sea duty in no way abrogates any right of appeal the Seafarer may have through collective bargaining agreements or to seek redress through other forums.

1.3. Release of Union Medical Records

The Master must require the Seafarer to complete a release of medical records and forward that form to the Ship Manager’s crew personnel office. The Ship Manager shall obtain the medical records authorized by the release if the Seafarer is injured or becomes ill, or if the Ship

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Manager has reason to believe the Seafarer has falsified any information regarding his/her current physical condition or medical history or that the Seafarer is otherwise unfit to assume the duties of his/her assignment.

1.4. Seafarer Data Sheet (Form 1001A)

On the date of hire, the Seafarer shall provide information needed to complete MARAD Form 1001A, “Seafarer Data Sheet” (Exhibit 5), from the top of the form to the section titled "Voyage Employment Information." This information includes the Seafarer's name, Social Security Number, license number, physical description, date and place of birth, citizenship, residence address, place and date of last physical examination, and the name of the physician who administered the exam. The form also has space for the Seafarer to provide information regarding the name and address of next of kin. The Seafarer should also complete Form MA- 269, “Designation or Change of Beneficiary for Second Seamen’s War Risk Insurance” (Exhibit 6). The Seafarer shall also execute a release of medical records.

1.5. Particulars of Engagement and Discharge (Form CG-705A)

In accordance with U.S. Coast Guard Navigation and Vessel Inspection Circular No. 1-86, “Shipment and Discharge of Seamen,” the Ship Master must prepare USCG Form CG-705A, “Particulars of Engagement and Discharge” (Exhibit 7). At the time of the Seafarer’s engagement for a voyage the Master shall complete the following sections of the form:

(1) Voyage Employment Information;

(2) Seafarer's Identification and Acceptance of Employment; and

(3) Seafarer's Rate and Wage Information.

Both the Master and Seafarer must sign the form. Upon the Seafarer's discharge from the voyage, the Master shall complete the section "Voyage Discharge and Release Information."

Both the Master and Seafarer will sign and date the form. A copy of the form is to be retained aboard the vessel until the voyage terminates or the articles expire, whichever occurs first.

Upon the expiration of the voyage or articles of engagement the completed form shall be forwarded to the Ship Manager's home office.

1.6. Prior Illness and Injury Report

As soon as practicable following the Seafarer’s date of hire, the Ship Manager shall obtain a commercially available report regarding the Seafarer's employment history. This report should list and describe illnesses and injuries sustained by the Seafarer, as well as any incidents of disciplinary action reported to the ISO ClaimSearch database11 by the Seafarer’s past marine employers. If, by examination of any available documentation regarding the Seafarer's past and current medical condition, the Ship Manager determines that the Seafarer was found by a

1 http://www.iso.com/Products/ISO-ClaimSearch/ISO-ClaimSearch-improve-claims-processing-and-prevent-fraud.html#menu http://www.iso.com/Products/ISO-ClaimSearch/ISO-ClaimSearch-improve-claims-processing-and-prevent-fraud.html#menu http://www.iso.com/Products/ISO-ClaimSearch/ISO-ClaimSearch-improve-claims-processing-and-prevent-fraud.html#menu

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J.3a Processing Seafarers’ Personal Injury/Illness Claims (Supplement A)

2016 Ship Manager qualified physician to have sustained an illness or injury that results in a finding of permanent or partial disability, rendering the Seafarer unfit for shipboard duty, the Seafarer must be questioned regarding such finding and ordered to provide proof of rehabilitation sufficient to substantiate a finding of “Fit For Duty” (FFD). Absent such proof, the Seafarer’s employment must be immediately terminated.

If the data in this report of prior illnesses or injuries conflicts with the information provided in the Form “Seafarer’s Statement of Physical Condition” (1.2) or the medical records from the Seafarer’s pre-employment physical (1.1), the conflict should be investigated. If the investigation reveals that the Seafarer failed to accurately and fully complete the “Seafarer’s Statement of Physical Condition,” such failure shall be grounds for immediate termination, without pay and shall be reported to MARAD for possible prosecution under 18 U.S. Code § 1001, the False Statements Act.

Section 2. DOCUMENTATION OF SEAFARER ILLNESSES AND INJURIES

If a Seafarer becomes ill or is injured and such illness or injury may have occurred while employed on a vessel, the Ship Manager must ensure that a complete and accurate record is made of the cause and details of the illness or injury in the vessel’s logs (2.1). The Ship Manager must also prepare a complete Personal Injury Report Package (2.2).

2.1. Required Logs

2.1.1. MEDICAL LOG

The Ship Manager shall maintain a Medical Log aboard each vessel, with illness or injury complaints recorded therein, along with the date of occurrence. Recorded entries should describe the symptoms of the reported illness and/or explain the events causing the injury. A description of any medical treatment rendered aboard the vessel must be recorded. If it is necessary to relieve the Seafarer of his/her duties in order to have him/her seek medical attention ashore, this shall also be noted.

The Medical Log may consist of multiple volumes if necessary, but must be labeled “Part 1, Part 2, etc.,” as appropriate, and be consecutively paginated. For example, if the last page of “Part 1” is 78, the first page of “Part 2” must be 79.

Both the Master and by the Medical Person-in-Charge (MPIC) must sign the Medical Log, daily.

The Master shall confirm with the ill or injured Seafarer's departmental supervisor that the Departmental Log also contains information to substantiate the reported illness or injury.

2.1.2. OFFICIAL LOGBOOK

The Ship Manager must ensure that the Master make all entries required by 46 U.S.C. § 11301 on the vessel’s

Official Logbook supplied by the United States Coast Guard (USCG).

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2.2. Initial Report of Personal Illness or Injury

2.2.1. EXAMINATION BY MEDICAL PERSON-IN-CHARGE (MPIC)

Immediately following a Seafarer’s report of illness or injury for which the Seafarer seeks medical attention, the Seafarer shall be examined by the vessel's MPIC, who shall make appropriate entries into the vessel's Medical Log. If, in the estimation of the MPIC, the requirement to provide prompt and appropriate medical attention means that the Seafarer should be excused from duty for a period of at least twenty-four (24) hours or otherwise discharged from the vessel, or a medical professional finds the Seafarer medically NFFD for a period of at least twenty-four (24) hours, the Seafarer's supervisor must complete Form MA- 1001C, “Initial Report of Personal Illness/Injury” (Exhibit 8). The Master must forward a copy of the completed “Initial Report of Personal Illness/Injury” to the Ship Manager’s home office at the earliest opportunity and by the most expeditious means. The Ship Manager must forward a copy of this form to the Office of Marine Insurance, MAR-770 within five (5) business days of receipt.

2.2.2. STATEMENT OF INDIVIDUAL REPORTING INJURY (FORM MA-1001D)

The Master must require the Seafarer, if able, to complete Form MA-1001D, “Statement of Individual Reporting Injury” (Exhibit 9) immediately following an accident or a request by the Seafarer for shore leave to seek medical attention due to alleged illness or injury. The Seafarer will detail the circumstances of the accident that caused the injury, and identify any person(s) who witnessed the accident or were known to be nearby the scene of the accident. If the Seafarer is removed from the vessel prior to completing this form, the Master shall be responsible for obtaining a completed form from the Seafarer as soon as possible.

2.3. Shore Side Medical Attention

If, in the opinion of the vessel's MPIC, it is in the best interest of the Seafarer and/or the vessel that the ill or injured Seafarer be attended by shore side medical personnel, the Master shall complete Form MA-1001E, “Master’s Report of Request for Medical Attention” (Exhibit 10).

This form, when completed and signed by the Master, shall serve as authorization for the Seafarer to seek medical attention from qualified shore-based medical providers. If the severity of the Seafarer's illness or injury does not preclude it, the Seafarer shall also sign this form. By signing, the Seafarer authorizes MARAD to obtain any record(s) of treatment relating to the medical complaint described in the form. The Master, by his/her signature as representative of the Ship Manager, also obligates the Ship Manager to pay reasonable and customary charges billed by the dentist, physician, clinic, or hospital providing treatment.

When and where practicable, the ill or injured Seafarer, when leaving the vessel to seek medical attention, should be accompanied by the vessel’s MPIC.

A copy of the “Master’s Report of Request for Medical Attention” must be retained aboard the vessel for the duration of the Seafarer’s employment aboard the vessel. If the ill or injured Seafarer is accompanied by the vessel’s MPIC or by a representative of the vessel’s agent, the

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MPIC or vessel’s agent shall provide the original of the “Master’s Report of Request for Medical Attention,” and request the attending dentist, physician, hospital or clinic complete Form MA- 1001F, “Report of Attending Dentist/Physician.” (Exhibit 11) The attending dentist or physician shall indicate his or her diagnosis, findings and treatment, along with the Seafarer's current duty status, and then sign and date the form. The completed form shall be returned to the Master.

If the Seafarer is accompanied by the vessel’s MPIC or agent, the MPIC/agent may return the completed form to the Master; however, the ultimate authority rests with the Seafarer to ensure that the Master is made aware of any finding or diagnosis and any recommendations regarding the Seafarer’s duty status. If the Seafarer is unaccompanied and following examination does not return to the vessel, the vessel's MPIC shall be made responsible for obtaining the completed “Report of Attending Dentist/Physician.”

Upon reviewing the completed “Report of Attending Dentist/Physician,” the Master shall decide as to the Seafarer’s duty status. In making such determination, the Master shall use the following guidelines:

• Fit for Duty (FFD): The Seafarer is able to safely perform the duties of his or her rating aboard vessel in the absence of medical care, without danger to his or her health, or the safety of the crew or vessel. A limited FFD cannot be given.

• Not Fit For Duty (NFFD): A NFFD status is issued when the Seafarer is unable to safely perform the duties of his or her rating aboard the vessel without danger to his or her health, the safety of the crew, or the vessel, in the absence of medical care. This condition is distinguished from Permanently Not Fit For Duty (PNFFD).

• Permanently Not Fit For Duty (PNFFD): A PNFFD is issued where the Seafarer is unable to perform the duties of his or her rating aboard a vessel because of medical, surgical or psychiatric condition for which, at this time, there is no effective treatment. The Seafarer is not expected to return to work aboard such a vessel because of the great danger to his or health, the safety of other crew members, and the vessel. This determination is not necessarily equivalent to a Permanent and Total Disability as defined by the Department of Health and Human Services (DHHS).

2.4. Investigations of Serious Injuries

If the Master, after reviewing the findings of the attending dentist or physician with respect to the Seafarer's duty status, determines that the Seafarer will be NFFD for seventy-two (72) hours or more, or medical condition warrants the Seafarer’s discharge from the vessel in order to allow further medical evaluation/treatment, the incident shall be considered a “Serious Illness or Injury” and the Master shall direct that an investigation be undertaken as to the circumstances of the illness or injury.

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2.4.1. INVESTIGATING OFFICER’S RESPONSIBILITIES

The investigating officer shall complete Form MA-1001G, “Report of Investigation of Serious Illness/Injury” (Exhibit 12). Such investigation shall be undertaken and report completed within seventy-two (72) hours of onset of the Seafarer’s alleged injury or illness.

The investigating officer shall undertake to obtain statements from any person(s) identified by the Seafarer to be at or nearby the scene of the accident. The investigating officer shall request that each person so identified complete Form MA-1001H, “Statement of Witness To or Person Nearby Scene of Reported Accident” (Exhibit 13). The investigating officer should also undertake to obtain from every crew member who it is determined was, may have been, or should have been at or near the scene of the alleged injury, but who claims not to have been a witness to the incident, his or her signature attesting thereto on Form MA-1001I, “Statement of Non-Witness to Personal Injury Incident” (Exhibit 14).

2.4.2. U.S. COAST GUARD FORMS 2692 AND 2692B

In the case of an accident that results in a Serious Illness or Injury that incapacitates the Seafarer for a period of seventy-two (72) hours or more, or results in the Seafarer's death, USCG Form 2692, “Report of Marine Accident, Injury or Death” (Exhibit 15) shall be completed, as well as USCG Form 2692B, “Report of Required Chemical Drug & Alcohol Testing Following a Serious Marine Incident.” (Exhibit 16) The latter report should be accompanied by the results of any drug or alcohol tests required by USCG. Questions regarding USCG Forms 2692 and 2692B may be directed to the Marine Safety Division of the USCG, Office of Marine Safety, Security and Environmental Protection.

2.4.3. PHYSICAL AND PHOTOGRAPHIC EVIDENCE

The Ship Manager shall document the investigation of an accident resulting in serious injury or death with still photographs and/or videotape. The investigating officer should, if possible, videotape and/or take photographs of the accident scene, and include, where available, any such videotape, developed photographs, or undeveloped film2, in the Personal Injury Report Package as set forth in Section 3. The investigating officer also should collect and preserve any physical evidence discovered bearing on the accident or illness. Upon receipt, the photographs and/or videotape will be copied and the originals returned to the Ship Manager or its designated agent. Digital photographs should be provided, where available, to the Office of Marine Insurance (MAR-770) and the MARAD Office of Chief Counsel, Division of Litigation and General Law (MAR-221). The Ship Manager is required to assure that contemporaneous records are kept which identify the person(s) who took the photos/video and collected the physical evidence and the date(s) on which they were taken or collected.

In addition to photographs and video, or in the absence of photographs and video, the investigating officer should undertake to include descriptive drawings or diagrams of the

2 Videotape and photographs are not limited to traditional formats and should include all digital media formats as well.

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2016 Ship Manager accident scene along with specifics as to the numbers and identification of the drawings/diagrams. Where the accident involved any vessel’s equipment, efforts should be made to preserve the equipment in the condition found at the time of the investigation, if, by doing so, the health and safety of the crew would not be endangered. If any repairs to the equipment were made after the alleged incident, a statement will be provided to this effect indicating the nature and extent of such repair.

Form MA-1001J, “Evidence List” (Exhibit 17), is suggested for identifying any drawings/diagrams, videotape, photographs, or physical evidence collected, as well as any piece(s) of vessel's equipment identified to be involved in the accident, if applicable.

Section 3. PERSONAL INJURY REPORT PACKAGE

As soon as practicable after the occurrence of an illness or injury, the Master must prepare a Personal Injury Report Package and forward the Package to the home office of the Ship Manager. The Package is meant to serve as an official record of the incident, and to assist the Ship Manager and MARAD in the event an administrative claim is filed. The forms described in sections above have been developed to aid the Master in compiling the requisite information and are referenced in MARAD Form 1001, “Serious Illness/Injury Report Package” (Exhibit 2).

Specifically, each Personal Injury Report Package should include, at a minimum, the following:

(1) MARAD Form 1001B, “Seafarer’s Statement of Physical Condition” (1.2);

(2) A release of medical records (1.3);

(3) MARAD Form 1001A, “Seafarer Data Sheet” (1.4);

(4) USCG Form CG-705A, “Particulars of Engagement and Discharge” (1.5);

(5) Copies of all medical log entries, official logbook entries, and departmental log entries, as described in 2.1;

(6) Form MA-1001C, “Initial Report of Personal Illness/Injury,” if the Seafarer is NFFD for a period of at least twenty-four (24) hours (2.2.1);

(7) Form MA-1001D, “Statement of Individual Reporting Injury” (2.2.2); and

(8) Form MA-1001E, “Master’s Report of Request for Medical Attention” and Form MA-1001F, “Report of Attending Dentist/Physician,” if shore-side medical providers examined the Seafarer (2.3).

If the Seafarer is determined NFFD for seventy-two (72) hours or more, or medical conditions warranted the Seafarer’s discharge from the vessel to allow further medical evaluation/treatment, the Personal Injury Report Package must also include:

(1) Form MA-1001G, “Report of Investigation of Serious Illness/Injury,” documenting the report undertaken pursuant to Section2.4, and each completed Form MA-1001H, “Statement of Witness To or Person Nearby Scene of Reported Accident” or Form MA-1001I, “Statement of Non-Witness to Personal Injury Incident” (2.4.1).

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(2) USCG Form 2692, “Report of Marine Accident, Injury or Death” and USCG Form 2692B, “Report of Required Chemical Drug & Alcohol Testing Following a Serious Marine Incident,” together with the results of any drug or alcohol tests required by the USCG (2.4.2); and

(3) Form MA-1001J, “Evidence List,” and all evidence reported thereon.

Section 4. PROCESSING SEAFARERS’ BENEFITS

4.1. Traditional Seafarers’ Benefits

When a Seafarer becomes ill or is injured and such illness or injury may have occurred while employed on the vessel, generally a vessel owner is required to provide the affected Seafarer certain traditional benefits, if the determination is made that the Seafarer was employed on the vessel at the time of the illness or injury, without regard to whether there is any other benefits/expenses (4.1.3). Except in rare circumstances these benefits are due every injured or ill Seafarer, regardless of fault. The principles of general maritime law govern the payment of these benefits, including the limited circumstances when such benefits are not payable.

Nothing contained in this agreement is intended to enlarge, expand or increase the Traditional Seafarers’ Benefits a Seafarer has under applicable admiralty law.

Crew members of a ship placed in Reduced Operating Status (ROS) are not traditional seafarers.

ROS crew members work aboard a vessel that remains pier side. ROS crew members do not sign articles and are not subject to the perils of the sea, nor do they have a specific duration of employment. Subject to the rights under their collective bargaining agreement, ROS crew members are at will employees. ROS crew members are subject to the call of vessel at all times, whether or not living aboard the vessel. When the vessel goes to sea, these individuals cease to be ROS crew members. See 4.1.2.

Traditional Seafarers’ Benefits, as set forth below, must be paid promptly by the Ship Manager and allocated to the individual claim as an expense to be reimbursed by MARAD. Failure to promptly pay such expenses may result in an assessment of punitive damages in litigation. The Ship Manager shall be required to reimburse the United States any such assessment of punitive damages unless the Ship Manager received written approval by the Office of Marine Insurance (MAR-770), with the concurrence of the MARAD Office of Chief Counsel, Division of Litigation and General Law (MAR-221), not to pay these Traditional Seafarers’ Benefits.

4.1.1. MAINTENANCE AND CURE

Upon receipt of the report from an attending physician indicating that the Seafarer is NFFD, the Ship Manager must pay maintenance (at the rate established in the collective bargaining agreement (CBA) or memorandum of agreement (MOA) with the Seafarer’s union) and cure (hospital and medical expenses incurred by a U.S. civilian or military hospital or other organization for the Seafarer’s care and treatment). Such payments should be made retroactively to the initial date the Seafarer is NFFD.

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The Ship Manger should request further NFFD reports on a bi-weekly basis and must continue the payment of maintenance and cure until one of the following conditions are met:

(1) The Seafarer is FFD by the attending physician;

(2) The attending physician certifies the Seafarer has reached Maximum Medical Improvement;

or

If a claim is in litigation (Section 6. ), the Ship Manager must inform MAR-221 if maintenance and cure payments are discontinued under (1) or (2), above.

MARAD will not reimburse the Ship Manager or General Agent for payment of maintenance above the rate established in the CBA/MOA with the Seafarer’s union. If a Ship Manager or General Agent pays a higher rate that is an action outside this contract and not an obligation of the United States.

4.1.2. UNEARNED WAGES

If a Seafarer’s service aboard the vessel has been interrupted by illness or injury, the Seafarer, depending on the terms of employment and admiralty law, may be entitled to receive those wages (exclusive of overtime wages) the Seafarer would have received if his or her service had not been interrupted. Vacation accrual and fringe benefits are considered part of unearned wages. Unearned wages cease upon the date the voyage ends, the date the Seafarer’s articles for the voyage expire, or the date the Seafarer is FFD and able to return to the voyage, whichever occurs first. Nothing contained in this agreement is intended to enlarge, expand or increase unearned wage benefits under applicable admiralty law. ROS crew members are not entitled to unearned wages; instead they are entitled to use sick leave accumulated under the terms of this contract and the applicable collective bargaining agreement.

4.1.3. REPATRIATION EXPENSES AND OTHER MISCELLANEOUS BENEFITS/EXPENSES

4.1.3.1. Repatriation Expenses

The Ship Manager shall pay all costs involved in returning an ill or injured Seafarer to that port in the United States that is expected to be the final voyage stop for the vessel. With the agreement of the Seafarer, the Seafarer may be returned to any other point in the United States, if it would result in less cost to the Ship Manager. If the nature or severity of the Seafarer's illness and/or injury would make it difficult for the Seafarer to insure his or her own physical wellbeing while in transit, the Seafarer should be accompanied to their home of record by Ship Manager personnel or other appropriate medical personnel.

4.1.3.2. Burial Expenses

Expenses incurred by the United States military or other organizations in the nature of burial costs for the preparation and transportation of deceased merchant Seafarers should be paid and allocated to the individual claim as an expense to be reimbursed by MARAD. Upon a Seafarer’s death, the Master shall immediately contact the Ship Manager, who shall in turn attempt to contact the deceased’s next of kin indicated on the MARAD form titled “Seafarer

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Data Sheet,” or the Ship Manager’s equivalent. All reasonable efforts shall be made to comply with the wishes of the next of kin or beneficiary regarding the disposition of the body of the deceased.

If the applicable union agreement requires the return of a deceased Seafarer to the United States or the port of engagement, the reasonable costs incurred are payable. If the union agreement is silent on the return of a deceased Seafarer to the United States, but the next of kin desires the return, the reasonable costs incurred of preserving and returning the body to the United States are payable.

If, after the body is returned to the United States, the Ship Manager is faced with paying additional burial expenses, such as for a suitable casket, shipping container, transportation, grave site, etc., such reasonable additional burial expenses as may be necessary to dispose of the body in keeping with the dignity of the United States Government, as vessel owner, are payable.

All reasonable burial costs incurred are to be charged to voyage expense.

4.1.3.3. Excess Baggage

Masters and Port Agents are to be advised that a repatriated Seafarer may carry baggage up to the limits of the transportation (i.e. air) ticket on which they are traveling, to minimize the reimbursable expense of excess baggage fees. Unless otherwise provided in the collective bargaining agreement, any excess baggage carried will be at the Seafarer’s own expense. A reasonable amount of baggage in excess of the air ticket, however, must be returned to a port in the United States by the Seafarer’s vessel, without any charge to the Seafarer. This baggage may be returned on another of the Ship Manager’s vessels with consent of that vessel’s Master.

In all cases, any baggage returned by vessel must be inventoried and receipt made for by the Master or his/her delegate. The Seafarer will be responsible for all costs associated with the storage and transport of such baggage from the port of discharge.

4.2. Processing Payment of Traditional Seafarers’ Benefits

If the Seafarer has not filed an administrative claim but has requested Traditional Seafarers’ Benefits, the Ship Manager shall estimate the amount of money necessary to satisfy the Traditional Seafarers’ Benefits and request a task order (TO) funded for the estimated amount.

Maintenance and cure expenses associated with an injury or illness shall be processed through the appropriate Funds Control Officer against an issued TO for such expenses.

Section 5. ADMINISTRATIVE CLAIMS

A Seafarer that becomes ill or is injured while employed on the vessel has legal recourse against MARAD pursuant to the Suits in Admiralty Act when the injury or illness arose from incidents of negligence or unseaworthiness, subject to the terms and conditions of the Clarification Act, 50

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U.S.C. App. § 1291(a) and the regulations promulgated thereunder. Ship Managers should be aware of the claim submission procedures in order to assist MARAD in the processing of any claims received. See 46 CFR Part 327.

All Ship Managers, in their dealings with claimants and their attorneys or other representatives, shall immediately make known the Government ownership of the vessel, as well as their status as Ship Manager and agent for MARAD, a Federal Agency of the United States. The purpose of such notification is to avoid confusion among claimants and their attorneys due to erroneous identification of the owner of the vessel.

5.1. Claim Procedure

A Seafarer with a claim for losses consequent to an illness or injury is subject to terms and conditions of the Clarification Act, as implemented by Title 46, Code of Federal Regulations, Part

327. A Seafarer or his or her surviving dependents or beneficiaries, or their legal representatives, must submit an administrative claim to MARAD that complies with the requirements of this Part. To the extent that anything in this contract conflicts with Part 327, the regulation shall control. MARAD has sixty (60) days from receipt of the completed claim3 to process the claim. A two-year statute of limitations governs these claims. The Ship Manager shall provide a copy of the claims regulations to any Seafarer wishing to pursue a claim for damages or other compensation.

5.1.1. WHAT ADDITIONAL INFORMATION MAY BE PROVIDED TO EXPEDITE CLAIM PROCESSING?

To ensure the efficient processing of an administrative claim, MARAD recommends that the Ship Manager make available the form “Seafarer’s Request for Administrative Allowance of Claim” (Exhibit 20). The Ship Manager shall explain that completion of the claim on this form is not a legal requirement. Any writing that contains the required information can serve as a claim, but the use of this form may expedite the processing of the Seafarer’s claim.

Additionally, while Part 327 sets forth all the information that must be provided to satisfy the Clarification Act, MARAD suggests that the Seafarer provide the following specific information:

5.1.1.1. Identification of the Claim

Any filing by which the Seafarer seeks to obtain the administrative allowance of claim should:

(1) Identify the claimant by providing his/her full legal name;

(2) Identify the claimant's attorney or other legal representative or otherwise identify the person to contact regarding the administrative claim, and how that person may be contacted (mailing address, phone and facsimile number, if available);

(3) Be designated as a claim, by means of the following wording, displayed prominently:

SEAFARER'S REQUEST FOR ADMINISTRATIVE ALLOWANCE OF CLAIM; and

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(4) Clearly identify, with respect to the incident giving rise to the claim: (a) The Seafarer (by full name);

(a) The Seafarer's Social Security Number;

(b) The Ship Manager;

(c) The name of the vessel; and

(d) The date of incident.

5.1.1.2. Information Regarding the Seafarer

In addition to the information requested in 46 C.F.R. § 327.4(b)(1), the Seafarer should provide a legal address, if it is different from the current mailing address.

5.1.1.3. Information Regarding the Basis of the Claim

The Seafarer should take care to include the following when supplying the information requested in 46 C.F.R. § 327.4(b)(2):

(1) The geographic location of the vessel at the time of the alleged incident. If at sea, indicate such, along with the next intended port of call; if in port, identify the port by city and country;

(2) The exact location of the alleged incident, whether aboard vessel or ashore;

(3) The time of the alleged incident--year, month and day, and the local time of day, where possible;

(4) A full and complete narrative of the facts and circumstances surrounding the alleged incident, describing how and why the alleged incident occurred;

(5) To the extent known, the names, ratings, addresses and phone number of witnesses and/or others who do have or may be expected to have knowledge of the incident, including, but not limited to, the Master, the Seafarer's supervisor, and coworkers; and

(6) Attach any documents that will support the claim.

5.1.1.4. Information Regarding the Seafarer’s Employment History

The Seafarer should also provide the Seafarers' union (if any) of which the Seafarer was a member at the time of incident, when supplying the employment history requested in 46 C.F.R.

§ 327.4(b)(4).

5.2. Processing Administrative Claims

5.2.1. RECEIPT AND ACKNOWLEDGEMENT OF SUBMISSIONS

If any letter or documentation which purports to be an administrative claim is submitted to the Ship Manager, the Ship Manager shall:

(1) Stamp the first page thereof and each discrete document in support thereof with the word “RECEIVED,” and indicate the date of receipt;

(2) Promptly forward a copy of such letter or documentation to MARAD

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(3) Acknowledge the fact of receipt to the Seafarer and his or her legal representative within ten (10) working days.

(4) All documents must be maintained in a record

5.2.2. RESPONSE TO IMPROPER CLAIM

If a Seafarer's representative submits a letter advising of his/her representation of a Seafarer who alleges an incident of personal injury while employed on a vessel, MARAD may respond by providing the form “Seafarer’s Request for Administrative Allowance of Claim” (Exhibit 20). If the Seafarer has provided some, but not all, of the required documentation, MARAD may respond by acknowledging receipt and advising of the requirement for additional documentation.

5.2.3. TASK ORDER AND CALCULATION OF ESTIMATED RESERVE AGAINST CLAIM

Upon receipt of any notice indicating that the Seafarer seeks the administrative allowance of a purported claim, the Ship Manager shall complete Form MA-1004, “Estimated Reserve Against Claim” (Exhibit 19) in accordance with the procedures below, and shall request from the Contracting Officer's Representative (COR) a Task Order (TO) to be issued by the Administrative Contracting Officer (ACO) for funding Traditional Seafarer’s Benefits (Section 4). The TO request shall be accompanied by the Form MA-1004 and any other documentation (medical billing statements, voyage pay vouchers, etc.) necessary to account for expenditures incurred by the Ship Manager on behalf of the ill/injured Seafarer.

The worksheet titled “Estimated Reserve Against Claim” presents a series of standardized calculations for deriving a recommended dollar reserve against a claim for compensatory damages and unearned wage benefits. A sample worksheet, completed for a hypothetical case, the dates for which are given on the diagram labeled "Employment History of Injured Ready Reserve Vessel Seafarer" is provided for your guidance.

To derive the recommended reserve, the Ship Manager must have knowledge of the time span between the data of the incident and the date the Seafarer returns to shipboard or other gainful employment, including:

(1) The date of the incident,

(2) The date the Seafarer was initially found NFFD, (3) The date of discharge,

(3) The voyage termination date, if Seafarer was employed on foreign voyage, and

(4) The date the Seafarer was found FFD or to have reached Maximum Medical Improvement.

Additionally, the Seafarer's actual monthly wage or daily wage rate for the period he/she was employed aboard the vessel must be known, along with the amount of unearned wages paid (if any). The number of days of vacation earned for every thirty (30) days shipboard employment (usually specified by union contract) must also be known to calculate the dollar value of lost vacation days.

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The completed worksheet should be submitted with the TO Request as a means of documenting the funding amount requested. The Ship Manager is required to submit the worksheet as soon as practicable after a purported claim is presented, notwithstanding that one or more of the dates (generally, the date FFD or date found to have reached Maximum Medical Improvement) needed to complete the calculations may not be known. In that event, the Ship Manager is requested to provide an estimate of the date(s) in question and complete the calculations based on the assumed date(s). If, during the administrative processing of the purported claim, any of the above dates are updated or otherwise amended, the Ship Manager is required to submit an updated worksheet based on the amended date(s).

The Ship Manager shall forward one (1) copy of each newly completed or revised “Estimated Reserve Against Claim” worksheet through the COR to the Office of Marine Insurance (MAR-

770) and the Office of Ship Operations (MAR-610).

Section 6. CLAIMS WHICH PROCEED TO LITIGATION

Where an administrative claim cannot be successfully resolved and a civil action is brought by or on behalf of the affected Seafarer, the Ship Manager will assist MARAD’s Office of Chief Counsel (MAR-220) and Office of Marine Insurance, MAR-770 in providing documentation and witnesses including, but not limited to, all items specified in Sections 5 above, as well as any other information, as required.

Section 7. SHIP MANAGER’S QUARTERLY REPORT

Ship Managers shall submit, within thirty (30) days following the close of the calendar quarter, a report of all "qualifying" incidents of personal injury sustained aboard those MARAD vessels for which they act as Ship Manager. A "qualifying" incident is defined as one involving illness and/or injury where the ill/injured Seafarer was found NFFD for a period of at least 24 continuous hours.

Each quarterly report shall include a separate entry for each qualifying incident. If possible, Ship Manager shall group the report should by Seafarer name (last, first, middle). Each entry should include the following items of information (as applicable). The quarterly reports submitted shall be encrypted to ensure protection of Personally Identifiable Information (PII):

(1) Seafarer's full name (last, first middle or middle initial);

(2) Seafarer's Social Security Number;

(3) Name of vessel on which the incident is alleged to have occurred;

(4) Claim department's incident reference identification (if any);

(5) Voyage identification number;

(6) Date of incident;

(7) Nature of illness/injury;

(8) Part(s) of the body affected;

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(9) Repatriation expense;

(10) Sum of maintenance payments to date;

(11) Sum of cure payments to date;

(12) Whether the Seafarer is fit for duty or has reached maximum medical improvement;

(13) Estimated dollar reserve for compensatory damages;

(14) Whether an administrative claim has been filed;

(15) If an administrative claim has been filed, date claim asserted; and

(16) If an administrative claim has been filed, name of claimant's attorney (or another representative).

One copy of this report shall be mailed to the COR, the ACO, MAR-770, and MAR-610. Personal injury or illness claims previously submitted by members of the crew but reported in a previous report as closed (i.e., maintenance and cure payments have terminated with no administrative claim filed) do not need to be included in subsequent quarterly reports unless the claim has been reopened or additional expenditures have been made since the incident was reported as closed.

APPENDIX

Exhibit 1 RESERVED

Exhibit 2 Form MA-1001, Serious Illness/Injury Report Package

Exhibit 3 Form MA-1001B, Seafarer’s Statement of Physical Condition

Exhibit 4 RESERVED

Exhibit 5 Form MA-1001A, Seafarer’s Data Sheet

Exhibit 6 Form MA-269, Designation or Change of Beneficiary for Second Seafarer’s War

Exhibit 7 Form CG-705A, Particulars of Engagement and Discharge Exhibit 8 Form MA- 1001C, Initial Report of Personal Illness/Injury Exhibit 9 Form MA-1001D, Statement of Individual Reporting Injury

Exhibit 10 Form MA-1001E, Master’s Report of Request for Medical Attention

Exhibit 11 Form MA-1001F, Report of Attending Dentist/Physician

Exhibit 12 Form MA-1001G, Report of Investigation of Serious Illness/Injury

Exhibit 13 Form MA-1001H, Statement of Witness to or Person Nearby Scene of Reported

Exhibit 14 Form MA-1001I, Statement of Non-Witness to Personal Injury Incident

Exhibit 15 Form 2692, Report of Marine Accident, Injury or Death

Exhibit 16 Form 2692B, Report of Required Chemical Drug & Alcohol Testing

Exhibit 17 MA-1001J, Evidence List

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Exhibit 18 Form CG-719K, Merchant Mariner Physical Examination Report

Exhibit 19 Form MA-1004, Estimated Reserve Against Claim

Exhibit 20 Seafarer’s Request for Administrative Allowance of Claim

[END OF ATTACHMENT J-3, SUPPLEMENT A]

SECTION

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LIST OF

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J-3b Incidents Involving Third Party Personal Injury, Illness, Property Damage Loss (Supplement B)

This document supplements the requirements identified in C.2.5.1.1, C.5.5, and G.9 CLAIMS AND REPORTS, of the Contract.

INTRODUCTION

In the event a National Defense Reserve Fleet or Ready Reserve Force1 (NDRF/RRF) vessel incurs property damage, causes property damage, or causes third-party personal injury/illness, the contractor shall follow the procedures set forth below.

Third-party property covered by these instructions consists of: other vessels; structures existing along waterways such as piers, buoys, wharves; and shore-side equipment such as transportation machinery or buildings.