Merchant Shipping Act 1995

165 Rights of third parties against insurers. U.K.

(1) Where it is alleged that the [F1 registered owner] of a ship has incurred a liability under section 153 as a result of any discharge or escape of oil occurring, or as a result of any relevant threat of contamination arising, while there was in force a contract of insurance or other security to which such a certificate as is mentioned in section [F2 163(2)] related, proceedings to enforce a claim in respect of the liability may be brought against the person who provided the insurance or other security F3 ....

[F4 (1A) Where it is alleged that the owner of a ship has incurred a liability under section 153A as a result of any discharge or escape of bunker oil occurring, or as a result of any relevant threat of contamination arising, while there was in force a contract of insurance or other security to which such a certificate as is mentioned in section 163A(2) related, proceedings to enforce a claim in respect of the liability may be brought against the person who provided the insurance or other security.

(1B) In the following provisions of this section, “the insurer” means the person who provided the insurance or other security referred to in subsection (1) or subsection (1A), as the case may be.]

(2) In any proceedings brought against the insurer by virtue of this section [F5 in respect of liability under section 153] it shall be a defence (in addition to any defence affecting the [F6 registered owner's] liability) to prove that the discharge or escape, or (as the case may be) the threat of contamination, was due to the wilful misconduct of the [F7 registered owner] himself.

(3) The insurer may limit his liability in respect of claims [F8 in respect of liability under section 153 which are] made against him by virtue of this section in like manner and to the same extent as the [F9 registered owner] may limit his liability [F10 under section 157] but the insurer may do so whether or not the discharge or escape, or (as the case may be) the threat of contamination, resulted from anything done or omitted to be done by the [F9 registered owner] as mentioned in section 157(3).

(4) Where the [F11 registered owner] and the insurer each apply to the court for the limitation of his liability [F12 (in relation to liability under section 153)] any sum paid into court in pursuance of either application shall be treated as paid also in pursuance of the other.

[F13 (4A) In any proceedings brought against the insurer by virtue of this section in respect of liability under section 153A it shall be a defence (in addition to any defence affecting the owner’s liability) to prove that the discharge or escape, or (as the case may be) the threat of contamination, was due to the wilful misconduct of the owner himself.

(4B) The insurer may limit his liability in respect of claims in respect of liability under section 153A which are made against him by virtue of this section in like manner and to the same extent as the owner may limit his liability by virtue of section 185; but the insurer may do so whether or not the discharge or escape, or (as the case may be) the threat of contamination, resulted from any act or omission mentioned in Article 4 of the Convention set out in Part I of Schedule 7.

(4C) Where the owner and the insurer each apply to the court for the limitation of his liability (in relation to liability under section 153A) any sum paid into court in pursuance of either application shall be treated as paid also in pursuance of the other.]

(5) The [F14 Third Parties (Rights against Insurers) Act 2010] shall not apply in relation to any contract of insurance to which such a certificate as is mentioned in section 163 [F15 or 163A] relates.

Textual Amendments

F1 Words in s. 165(1) substituted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(2)(a) (with reg. 1(5))

F2 Word in s. 165(1) substituted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(2)(b) (with reg. 1(5))

F3 Words in s. 165(1) omitted (21.11.2008) by virtue of The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(2)(c) (with reg. 1(5))

F4 S. 165(1A)(1B) inserted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(3) (with reg. 1(5))

F5 Words in s. 165(2) inserted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(4)(a) (with reg. 1(5))

F6 Words in s. 165(2) substituted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(4)(b) (with reg. 1(5))

F7 Words in s. 165(2) substituted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(4)(c) (with reg. 1(5))

F8 Words in s. 165(3) inserted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(5)(a) (with reg. 1(5))

F9 Words in s. 165(3) substituted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(5)(b) (with reg. 1(5))

F10 Words in s. 165(3) inserted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(5)(c) (with reg. 1(5))

F11 Words in s. 165(4) substituted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(6)(a) (with reg. 1(5))

F12 Words in s. 165(4) inserted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(6)(b) (with reg. 1(5))

F13 S. 165(4A)-(4C) inserted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(7) (with reg. 1(5))

F14 Words in s. 165(5) substituted (1.8.2016) by Third Parties (Rights against Insurers) Act 2010 (c. 10), s. 21(2), Sch. 2 para. 3; S.I. 2016/550, art. 2

F15 Words in s. 165(5) inserted (21.11.2008) by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006 (S.I. 2006/1244), regs. 1(2), 19(8) (with reg. 1(5))

Modifications etc. (not altering text)

C1 s. 165 extended (with modifications) to Anguilla (30.11.1997) by S.I. 1997/2580, art. 2, Sch.

s. 165 extended (with modifications) to Bermuda (30.11.1997) by S.I. 1997/2581, art. 2, Sch.

s. 165 extended (with modifications) to the British Antarctic Territory (30.11.1997) by S.I. 1997/2582, art. 2, Sch.

s. 165 extended (with modifications) to the British Indian Ocean Territory (30.11.1997) by S.I. 1997/2583, art. 2, Sch.

s. 165 extended (with modifications) to the Falkland Islands (30.11.1997) by S.I. 1997/2584, art. 2, Sch.

s. 165 extended (with modifications) to the Pitcairn, Henderson, Ducie and Oneo Islands (30.11.1997) by S.I. 1997/2585, arts. 2, 3, Sch.

s. 165 extended (with modifications) to the Sovereign Base Areas of Akrotiri and Dhekelia (30.11.1997) by S.I. 1997/2587, art. 2, Sch.

s. 165 extended (with modifications) to the South Georgia and the South Sandwich Islands (30.11.1997) by S.I. 1997/2588, art. 2, Sch.

s. 165 extended (with modifications) to the Turks and Caicos Islands (30.11.1997) by S.I. 1997/2589, art. 2, Sch.

s. 165 extended (with modifications) to the Virgin Islands (30.11.1997) by S.I. 1997/2590, art. 2, Sch.

S. 165 extended (with modifications) to Jersey (1.12.1997) by S.I. 1997/2598, arts. 2, 3, Sch. 1

S. 165 extended (with modifications) to Guernsey (11.3.1998) by S.I. 1998/260, arts. 2, 3, Sch. 1

S. 165 extended (with modifications) to the Cayman Islands (20.5.1998) by S.I. 1998/1261, art. 2, Sch.

S. 165 extended (with modifications) to Montserrat (20.5.1998) by S.I. 1998/1262, art. 2, Sch.

S. 165 extended (with modifications) to Saint Helena (20.5.1998) by S.I. 1998/1263, art. 2, Sch.