SCHEDULE TO THE ORDERTHE MERCHANT SHIPPING ACT 1995

PREVENTION OF POLLUTION PART VI

CHAPTER IIILIABILITY FOR OIL POLLUTION

Compulsory insurance

Compulsory insurance against liability for pollution.163

1

Subject to the provisions of this Chapter relating to Government ships, subsection (2) below shall apply to any ship carrying in bulk a cargo of more than 2,000 tons of oil of a description specified in regulations made by the Governor.

2

The ship shall not enter or leave a port in the Falkland Islands or arrive at or leave a terminal in the territorial sea of the Falkland Islands nor, if the ship is registered in the Falkland Islands, a port in any other country or a terminal in the territorial sea of any other country, unless there is in force a certificate complying with the provisions of subsection (3) below and showing that there is in force in respect of the ship a contract of insurance or other security satisfying the requirements of Article VII of the Liability Convention (cover for owner’s liability).

3

The certificate must be—

a

if the ship is registered in the Falkland Islands, a certificate issued by the Governor;

b

if the ship is registered in a Liability Convention country other than the Falkland Islands, a certificate issued by or under the authority of the government of the other Liability Convention country; and

c

if the ship is registered in a country which is not a Liability Convention country, a certificate issued by the Governor or by or under the authority of the government of any Liability Convention country other than the Falkland Islands.

4

Any certificate required by this section to be in force in respect of a ship shall be carried in the ship and shall, on demand, be produced by the master to any customs officer and, if the ship is registered in the Falkland Islands, to any proper officer.

5

If a ship enters or leaves, or attempts to enter or leave, a port or arrives at or leaves, or attempts to arrive at or leave, a terminal in contravention of subsection (2) above, the master or owner shall be liable on conviction on indictment to a fine, or on summary conviction to a fine not exceeding £50,000.

6

If a ship fails to carry, or the master of a ship fails to produce, a certificate as required by subsection (4) above, the master shall be liable on summary conviction to a fine not exceeding level 4 on the standard scale.

7

If a ship attempts to leave a port in the Falkland Islands in contravention of this section the ship may be detained.