HC Deb 09 December 1919 vol 122 cc1116-20

Compensation Scheme for Masters, Officers and Seamen.

In the event of a master, officer or seaman of a British merchant ship being killed or injured through war risks, compensation will be paid in accordance with the scale of which particulars are given below.

If the crew are employed and paid by the owners of the vessel, the compensation, including any sums that may be due under the Workmen's Compensation Act, will be administered by the War Risks Association in which the ship was entered at the time of the accident, under an agreement with the Board of Trade.

In the case of vessels not entered in any War Risks Association at the time of the loss, the Liverpool and London War Risks Insurance Association have undertaken to administer the compensation. The owner is not, relieved of any liability to which he may be subject under the Workmen's Compensation Act, and any amounts due under that Act will have to be paid in the usual way. The association, on behalf of the Board of Trade, will see that the total compensation paid, including any amounts so paid under the Workmen's Compensation Act, are in accordance with the scheme.

If it is not known in what association the vessel was entered, the information can be obtained either from the owners or from the Board of Trade. Any applications sent to the Board of Trade will be forwarded at once to the association concerned.

The arrangements indicated in this circular will not apply to ships the crews of which are employed and paid by the Admiralty or War Office. In such cases any compensation due will be settled direct by the Department concerned with the party entitled, in accordance with the agreements under which the crews were engaged.

The pensions and allowances payable under the scheme are as follows:

  1. 1. In cases of injury or disablement resulting in total incapacity 2/3rds pay; and proportionate allowances will be made if the injury or disablement has only impaired, but not destroyed, the earning capacity of the injured men.
  2. 2. In cases of death the widow's pension is 1/3rd of the pay with a minimum of £35 15s. per annum, and such pension is payable until death or remarriage.

Children's allowances are equal to 1/10th pay for each child, with a maximum of £24 per annum or 1/24th pay, whichever be the greater, and with the following minima: £13 per annum for one child, £23 16s. 8d. for two children, £32 10s. for three children, and an additional £6 10s. per annum for each additional child.

When the only dependants of a deceased officer or seaman are children, the allowance for each child is 1/6th pay with a minimum of £13 per annum, and with a maximum of £24 per annum or 1/12th pay, whichever be the greater.

The allowance continues until the age of sixteen, but in the case of a child who is an apprentice receiving not more than nominal wages or is being educated at a secondary school, technical institute or university, the allowance may be continued up to the age of eighteen at the discretion of the War Risks Association.

3. The pay upon which the pensions and allowances are to be calculated will be the rates ruling six months before the outbreak of the War—that is, the rates ruling in February, 1914. An allowance on account of victualling will be added in cases in which a free mess was allowed in addition to pay.

The scheme provides for the satisfaction in full of all legal rights now existing under the Workmen s Compensation Act.

If the disablement allowances under the Workmen's Compensation Act exceed those payable in accordance with the above scale, the allowances under that Act are paid, but, generally speaking, the scheme provides for the payment of disablement allowances in excess of those payable under the Workmen's Compensation Act, and in these cases the payment of the allowances under the scheme will be in satisfaction of all claims under the Act.

In ascertaining the pension payable to a widow or, in cases where there is no widow, the allowances to be made in respect of the children, the amount of compensation payable under the Act will have to be taken into account.

In the case of widows, this will be done by calculating, in accordance with the Post Office tables, the amount of the annuity which could be purchased for the lump sum which is payable to the widow and children by way of compensation under the Act. If the amount of the annuity so purchasable be less than the pension payable under the Admiralty Scheme, then the difference will be paid to the claimant as an annuity and the lump sum will be paid into Court.

The compensation payable under the Act need not be invested in an annuity. It will, following the present practice; be paid into the County Court, and it will be applied, under the direction of the judge, for the benefit of the widow.

Upon this basis the amount of pension the widow will receive in addition to the compensation payable under the Act will, of necessity, depend on the age of the widow. The older the widow is the larger will be the annuity that could be purchased with the compensation money, and therefore the smaller will be the pension payable under the scheme.

The following examples show the manner in which the pension payable to a widow aged thirty will be arrived at:

1. Officer whose pay in pre-war time was £10 a month.—To this pay will be added a victualling allowance of 3s. a day, bringing the total pay up to £174 a year.

The amount of the compensation paid into Court is assumed to be £300.

£ s. d.
The widow's pension will be 1/3rd of the £174 58 0 0
Less the value of the annuity which could be purchased with the £300 paid into Court 15 12 2
£42 7 10

The widow will therefore receive the £300 paid into Court, and until death or remarriage, £42 7s. 10d. a year.

2. Seamen whose pay in pre-war time was £5 10s. a month.—To this pay will be added a victualling allowance of 1s. 6d. a day, bringing the total pay up to £93 a year. The amount of the compensation paid into Court is assumed to be £300.

£ s. d.
The widow's pension (as 1/3rd of the £93 is less than the minimum of £35 15s.) will be 35 15 0
Less the value of the annuity which could be purchased with the £300 paid into Court 15 12 2
£20 2 10

The widow will therefore receive the £300 paid into Court, and until death or remarriage £20 2s. 10d. a year.

The children's allowances up to the age of sixteen are in addition to these pensions.

Officers and engineers earning upwards of £250 per annum are not covered by the Workmen's Compensation Act, and therefore the widow's pension will amount to 1/3rd of their pay plus the children's allowances as set out on page 2. For example, if the officer's pay is £18 a month there will be added a victualling allowance of 3s. a day, bringing the total pay up to £270 a year.

The widow's pension will be £90 a year, plus the children's allowances as set out on page 2.

Board of Trade,

Revised February, 1919.

Handbill No. 358.