A new bill has been signed into law. Senate Bill 93 ensures that Alaskans working in the commercial fishing industry have appropriate access to their funds when they are ill or injured.
According to the Alaska Statute, the bill relates to claims against protection and indemnity insurance policies of vessel owners.
This bill was introduced at the request of the Alaska Fishermen’s Fund Advisory and Appeals Council to provide incentives to vessel owners to acquire Protection & Indemnity (P&I) insurance coverage by increasing statutory reimbursements to crewmembers and vessel owners for crewmember injuries and illnesses. The bill also adds viral infections to the list of covered occupational diseases and would reduce the maximum payout amounts if the fund balance falls below statutory thresholds.
Established in 1951, the Fishermen’s Fund provides for the treatment and care of Alaska-licensed commercial fishermen who have been injured in Alaska while fishing offshore or doing fishing-related work on shore. Benefits from the Fund are financed from revenue received from each resident and nonresident commercial fishing license and permit fee.
“After passing the legislature 59-1, I’m thankful that my bill, Senate Bill 93, was signed into law yesterday! This bill increases the limits on payouts for commercial fishing injuries and better ensures fishing crew members’ medical costs are covered. SB 93 is zero cost to the State treasury, because the Alaska Fisherman’s Fund dollars come from fees received from commercial fishing license sales. The fund is healthy, and fees will not increase from this change,” said Senator Jesse Bjorkman.
Commercial fishers are not covered under Workers’ Compensation. If a crew member is injured beyond $15,000 worth of medical and/or legal bills and the vessel owner foregoes P&I insurance coverage, the vessel owner and vessel are at risk to potential medical and/or legal liabilities if an injured crewman is not made whole in an injury case. This bill encourages vessel owners to purchase the coverage by increasing the reimbursable deductible to $15,000,
As policies have risen in price, operating costs have appreciated, and labor shortages have impacted bottom lines, many owners have purchased policies with a higher deductible to control costs. This bill provides support to vessel owners by establishing equity for crew across the industry, potential cost savings, and protection of loss that enables owners to provide for injury or illness without risking their entire operation.
