Merchant Shipping (Civil Liability and Compensation for Bunker Oil Pollution) Act 2008 Division 2 — Compulsory Insurance

s 12–s 14 · 3 sections

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗

Compulsory insurance against liability for bunker oil pollution

s 12

12.—(1) Subsection (2) applies to any ship having a gross tonnage greater than 1,000. (2) The ship must not enter or leave any port in Singapore or enter or leave any offshore facility in the territorial sea of Singapore and must not, if it is a Singapore ship, enter or leave any port in any other country or any offshore facility in the territorial sea of any other country, unless there is in force —(a) a contract of insurance or other security in respect of the ship satisfying the requirements of Article 7 of the Bunker Convention; and (b) a certificate complying with subsection (3) and showing that there is in force in respect of the ship a contract of insurance or other security satisfying those requirements. (3) The certificate shall be —(a) if the ship is a Singapore ship — a certificate issued by the Director; (b) if the ship is registered in a Bunker Convention country other than Singapore — a certificate issued by or under the authority of the government of that other Bunker Convention country; and (c) if the ship is registered in a country which is not a Bunker Convention country — a certificate issued by the Director or by or under the authority of the government of any Bunker Convention country other than Singapore. (4) The Authority may, with the approval of the Minister, by regulations provide that certificates in respect of ships registered in any country or any specified country which is not a Bunker Convention country are, in such circumstances as may be specified in the regulations, recognised for the purposes of subsection (3)(c) if the certificates are issued by or under the authority of the government of the country designated in the regulations in that behalf; and the country that may be so designated may be either or both of the following:(a) the country in which the ship is registered; (b) any country specified in the regulations for the purposes of this subsection. (5) Any certificate required by this section to be in force in respect of a ship must be carried in the ship and must, on demand, be produced by the master to any officer of the Authority and, if the ship is a Singapore ship, to any consular officer within the meaning of the Merchant Shipping Act 1995. (6) If a ship enters or leaves, or attempts to enter or leave a port or the territorial sea in contravention of subsection (2), the master or the registered owner of the ship shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1 million. (7) If a ship fails to carry, or the master of a ship fails to produce, a certificate as required under subsection (5), the master of the ship shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000. (8) If a ship attempts to leave a port in, or the territorial sea of, Singapore in contravention of this section, the ship may be detained by the Director or the officers of the Authority or any police officer or any commissioned officer on full pay in the Singapore Armed Forces. (9) Section 209 of the Merchant Shipping Act 1995 applies, with the necessary modifications, to the detention of a ship under this Act.

Issue of certificates

s 13

13.—(1) Subject to subsection (2), if the Director is satisfied, on an application for a certificate mentioned in section 12 in respect of a Singapore ship or a ship registered in any country which is not a Bunker Convention country, that there will be in force in respect of the ship, throughout the period for which the certificate is to be issued, a contract of insurance or other security satisfying the requirements of Article 7 of the Bunker Convention, the Director may issue such a certificate to the owner. (2) If the Director is of the opinion that there is any doubt whether the person providing the insurance or other security will be able to meet the person’s obligations thereunder, or whether the insurance or other security will cover the owner’s liability under section 3 in all circumstances, the Director may refuse to issue the certificate. (3) The Director must maintain a record of any certificate issued under this section in respect of a Singapore ship which must be available for public inspection.

Rights of third parties against insurers

s 14

14.—(1) Where it is alleged that the owner of a ship has incurred a liability under section 3 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 a certificate mentioned in section 12 is related, proceedings to enforce a claim in respect of the liability may be brought against the person who provided the insurance or other security (called in this Act the insurer). (2) In any proceedings brought against the insurer by virtue of this section, it is a defence (in addition to any defence affecting the owner’s liability) to prove that the discharge or escape or the relevant threat of contamination (as the case may be) was due to the wilful misconduct of the owner. (3) The insurer may limit the insurer’s liability in respect of claims made against the insurer by virtue of this section in like manner and to the same extent as the owner may limit the owner’s liability but the insurer may do so whether or not the discharge or escape or the relevant threat of contamination (as the case may be) resulted from anything done or omitted to be done by the owner as mentioned in section 6(4). (4) Where the owner and the insurer each apply to the Court for the limitation of the liability of the owner or the insurer (as the case may be), any sum paid into Court in pursuance of either application is treated as paid also in pursuance of the other.

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