Blog Preview
Issue of certificate of insurance or other financial security in respect of libility for the removal of wrecks under Article 12 of the Nairobi International Convention on the Removal of wrecks, 2007 - clarification of the M.S. Notice No.2 of 2015.
Key Changes and Requirements
1. Clarification on Insurance Companies
The Directorate General of Shipping clarifies that all Indian insurance companies duly approved by the Insurance Regulatory and Development Authority (IRDA) are considered as approved by the Government of India.
2. Insurance Limits for Wreck Removal
Registrars issuing Certificates of Insurance or other Financial Security (CIOFS) for wreck removal must ensure that the insurance provided by approved companies (IG group P&I Clubs, Indian insurance companies, and other approved companies) meets or exceeds the following limits based on the vessel's gross tonnage:
- a. Loss of life or personal injury: See detailed table below.
- b. Any other claims: 1.51 million Units of Account for a ship with a tonnage up to 2,000 tons, with progressive increases for tonnage above 2,000 tons.
| Tonnage Range | Limit (Units of Account) |
|---|---|
| Up to 2,000 tons | 3.02 million |
| 2,001 to 30,000 tons | 604 Units of Account per ton |
| 30,001 to 70,000 tons | 453 Units of Account per ton |
| Above 70,000 tons | 302 Units of Account per ton |
Ensure that the insurance company is approved and the limits comply with the revised rules to avoid delays or issues with wreck removal.
Want to learn and share your knowledge about the maritime world?
Explore the Blog app on Navvyx - Get maritime insights from across the world in one place.