Merchant Shipping Act 1995

[F1 Insurance U.K.

Textual Amendments

F1 Pt. 9A inserted (5.2.2015 for the insertion of ss. 255A, 255J, 255N, 255R for specified purposes, 14.4.2015 in so far as not already in force) by Wreck Removal Convention Act 2011 (c. 8), ss. 1(2), 2(2); S.I. 2015/133, arts. 2, 3

255J Wreck removal insurance U.K.

(1) This section applies to ships with a gross tonnage of 300 or more.

(2) A United Kingdom ship may not enter or leave a port in the United Kingdom or elsewhere unless—

(a) the ship has wreck removal insurance, and

(b) the Secretary of State has certified that it has wreck removal insurance.

(3) A foreign ship may not enter or leave a port in the United Kingdom unless—

(a) the ship has wreck removal insurance, and

(b) there is a certificate confirming that it has wreck removal insurance.

(4) For a ship registered in a foreign Wrecks Convention State the certificate must be one that has been issued by or under the authority of the government of that State.

(5) For a foreign ship registered in any other State the certificate must be one that has been issued—

(a) by the Secretary of State, or

(b) by or under the authority of the government of a Wrecks Convention State.

(6) For the purposes of subsection (1) the gross tonnage of a ship is to be calculated in the manner prescribed by order under paragraph 5(2) of Part II of Schedule 7.

(7) In this Part—

• “wreck removal insurance” means a contract of insurance or other security satisfying the requirements of Article 12 of the Wrecks Convention, and “insurer” means the person providing the insurance or other security, and

• “wreck removal insurance certificate” means a certificate required by subsection (2)(b) or (3)(b).

255K Failure to insure U.K.

(1) The master and operator of a ship are each guilty of an offence if—

(a) the ship enters or leaves a port in contravention of section 255J, or

(b) anyone attempts to navigate the ship into or out of a port in contravention of that section.

(2) A person guilty of the offence is liable[F2 —

(a) on summary conviction, to a fine not exceeding £50,000, or

(b) on conviction on indictment, to a fine]

[F2 on summary conviction, or on conviction on indictment, to a fine].

Textual Amendments

F2 Words in s. 255K(2) substituted (E.W.) (12.3.2015) by The Legal Aid, Sentencing and Punishment of Offenders Act 2012 (Fines on Summary Conviction) Regulations 2015 (S.I. 2015/664), reg. 1(1), Sch. 4 para. 27(14) (with reg. 5(1))

255L Detention of ships U.K.

A ship may be detained if anyone attempts to navigate it out of a port in contravention of section 255J.

255M Production of certificates U.K.

(1) This section applies to a ship which is required to have a wreck removal insurance certificate before entering or leaving a port.

(2) The master of the ship must ensure that the certificate is carried on board.

(3) The master of the ship must, on request, produce the certificate to—

(a) an officer of Revenue and Customs;

(b) an officer of the Secretary of State;

(c) if the ship is a United Kingdom ship, a proper officer.

(4) Failure to comply with subsection (2) or (3) is an offence.

(5) A person guilty of the offence is liable on summary conviction to a fine not exceeding level 5 on the standard scale.

255N Issue of certificates U.K.

(1) This section applies where the registered owner applies to the Secretary of State for a wreck removal insurance certificate in respect of—

(a) a United Kingdom ship, or

(b) a foreign ship registered in a State other than a Wrecks Convention State.

(2) In relation to a United Kingdom ship, the Secretary of State must issue the certificate if satisfied—

(a) that the ship has wreck removal insurance in place for the period to which the certificate will relate, and

(b) that the obligations of the person providing the wreck removal insurance will be met.

(3) In relation to a foreign ship registered in a State other than a Wrecks Convention State, the Secretary of State may issue the certificate if satisfied of the matters in paragraphs (a) and (b) of subsection (2).

(4) The Secretary of State must send a copy of a certificate issued in respect of a United Kingdom ship to the Registrar General of Shipping and Seamen.

(5) The Registrar must make such certificates available for public inspection.

255O Cancellation of certificates U.K.

(1) The Secretary of State may make regulations about the cancellation and delivery up of wreck removal insurance certificates issued under section 255N.

(2) A person who fails to deliver up a certificate in accordance with the regulations is guilty of an offence.

(3) A person guilty of the offence is liable on summary conviction to a fine not exceeding level 4 on the standard scale.

255P Third parties' rights against insurers U.K.

(1) This section applies where—

(a) a ship has been involved in an accident as a result of which it or anything from it has become a wreck in the United Kingdom's Convention area,

(b) at the time of the accident the ship had wreck removal insurance, and

(c) there is a wreck removal insurance certificate in relation to the insurance.

(2) A person who is entitled to recover costs from the ship's registered owner under section 255G may recover them from the insurer.

(3) It is a defence for the insurer to prove that the accident was caused by the wilful misconduct of the ship's registered owner.

(4) The insurer may also rely on any defences available to the registered owner (including section 255H).

(5) The insurer may limit liability in respect of claims made under this section to the same extent as the registered owner may limit liability by virtue of section 185 (or would be able to limit liability by virtue of that section if it were not for paragraph 3 of Part 2 of Schedule 7).

(6) But an insurer may limit liability whether or not the accident is caused by an act or omission mentioned in Article 4 of the Convention set out in Part 1 of Schedule 7.

(7) The following do not apply in relation to any wreck removal insurance to which a wreck removal insurance certificate relates—

(a) the Third Parties (Rights against Insurers) Act 1930;

(b) the Third Parties (Rights against Insurers) (Northern Ireland) Act 1930;

(c) the Third Parties (Rights against Insurers) Act 2010.

255Q Electronic certificates U.K.

(1) This section applies if the Secretary of State has given, or proposes to give, notice under paragraph 13 of Article 12 of the Wrecks Convention (electronic insurance certificates, &c.).

(2) The Secretary of State may by order make such amendments of this Part as the Secretary of State thinks necessary or expedient for giving effect to the notice.

(3) An order may be made only if a draft has been laid before and approved by resolution of each House of Parliament.

(4) An order may include incidental, supplemental or transitional provision.]