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11.—(1) The owner or master of a vessel must not keep, let for hire or use the vessel on the waterways unless there is in force in relation to the vessel a policy of insurance complying with the requirements of Schedule 3.
(2) The requirements of paragraph (1) do not apply in relation to a vessel to the extent that the vessel is exempted by the Agency from those requirements.
(3) The Agency may exempt any unpowered vessel or class of unpowered vessel from the application of paragraph (1) to such extent and upon such terms and conditions as it may determine if, having regard to its assessment of the risk of damage or injury which such insurance would provide cover against, it considers such exemption appropriate.
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