- Latest available (Revised)
- Point in Time (22/11/1994)
- Original (As enacted)
Version Superseded: 01/01/1996
Point in time view as at 22/11/1994.
There are currently no known outstanding effects for the Merchant Shipping Act 1974, Cross Heading: Indemnification of shipowners.
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(1)Where a liability is incurred under section 1 of the Act of 1971 in respect of a ship registered in a Fund Convention country the Fund shall indemnify the owner and his guarantor for that portion of the aggregate amount of the liability which—
(a)is in excess of an amount equivalent to [F1100 special drawing rights] for each ton of the ship’s tonnage or of an amount of [F18,333,000 special drawing rights], whichever is the less, and
(b)is not in excess of an amount equivalent to [F1133 special drawing rights] for each ton of the said tonnage or an amount of [F114 million special drawing rights], whichever is the less.
(2)Where proceedings under the Liability Convention for compensation for pollution damage have been brought in a country which is not a Fund Convention country (but is a country in respect of which the Liability Convention is in force), and either—
(a)the incident has caused pollution damage in the United Kingdom (as well as in that other country); or
(b)the headquarters of the Fund is for the time being in the United Kingdom,
subsection (1) above shall apply with the omission of the words “under section 1 of the Act of 1971”.
(3)The Fund shall not incur an obligation under this section where the pollution damage resulted from the wilful misconduct of the owner.
(4)In proceedings to enforce the Fund’s obligation under this section the court may exonerate the Fund wholly or partly if it is proved that, as a result of the actual fault or privity of the owner—
(a)the ship did not comply with such requirements as the Secretary of State may by order prescribe for the purposes of this section, and
(b)the occurrence or damage was caused wholly or partly by that non-compliance.
(5)The requirements referred to in subsection (4) above are such requirements as appear to the Secretary of State appropriate to implement the provisions of—
(a)article 5(3) of the Fund Convention (marine safety conventions), and
(b)article 5(4) of the Fund Convention (which enables the Assembly of the Fund to substitute new conventions).
(6)An order made under subsection (4) above—
(a)may be varied or revoked by a subsequent order so made, or
(b)may contain such transitional or other supplemental provisions as appear to the Secretary of State to be expedient, and
(c)shall be contained in a statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.
(7)Expenses reasonably incurred, and sacrifices reasonably made, by the owner voluntarily to prevent or minimise the pollution damage shall be treated as included in the owner’s liability for the purposes of this section.
[F2(8)For the purpose of converting into sterling the amount in special drawing rights adjudged to be payable by the Fund by way of indemnity in such proceedings as are mentioned in subsection (4) of this section, paragraphs (a) to (c) of subsection (13) of section 4 of this Act shall have effect—
(a)if the liability in question has been limited in pursuance of section 5 of the M1Merchant Shipping (Oil Pollution) Act 1971, as if—
(i)for the reference in the said paragraph (a) to the amount there mentioned there were substituted a reference to the amount adjudged as aforesaid, and
(ii)for any reference to the day on which the judgment is or was given there were substituted a reference to the day on which the determination of the limit was made in pursuance of the said section 5; and
(b)if the liability in question has not been so limited, with the modification made by paragraph (a)(i) of this subsection and as if for any reference to the day on which the judgment is or was given there were substituted a reference to the day on which the said amount was so adjudged.]
Textual Amendments
F1Words “100 special drawing rights” and “133 special drawing rights” substituted (prosp.) respectively for words “1,500 francs” and “2,000 francs”, and words “8,333,000 special drawing rights” and “14 million special drawing rights” substituted respectively for words “125 million francs” and “210 million francs” (22.11.1994) by Merchant Shipping Act 1979 (c. 39, SIF 111), ss. 38(4)(d), 52(d); S.I. 1994/2789, art. 2, Sch.
F2S. 5(8) inserted (22.11.1994) by Merchant Shipping Act 1979 (c. 39), ss. 38(4)(e), 52(2); S.I. 1994/2789, art. 2, Sch.
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