Merchant Marine Act
What Does Merchant Marine Act Mean?
The Merchant Marine Act, commonly known as the Jones Act, is legislation that established various rules and regulations governing the domestic shipment of goods by water within the United States. In terms of insurance, the act allows sailors to seek compensation for damages from the ship’s captain, the shipping company, or the ship owner in the event of a loss. As a result, it incentivized shipping companies to acquire additional liability insurance.
Insuranceopedia Explains Merchant Marine Act
The Merchant Marine Act passed in 1920, came just a few years after the Titanic disaster highlighted the risks faced by ship crew members. The tragedy underscored the dangers of maritime work and contributed to the creation of the act. The Merchant Marine Act granted sailors and crew members significantly more legal power to hold their employers accountable for losses incurred during their work. This, in turn, increased liability for shipping companies and drove the need for enhanced liability insurance. Since its inception, the act has undergone several amendments.
