Merchant Shipping Act 1995

[F1 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.]

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