These Regulations transpose Directive 2009/20/EC of the European Parliament and of the Council of 23rd April 2009 on the insurance of shipowners for maritime claims (O.J. L.131, 28.5.2009, p.128).

The effect of these Regulations is to require shipowners to insure their seagoing ships of 300 gross tonnes or more (regulation 3). The insurance must cover maritime claims of the type described as subject to limitation under the 1976 Convention on Limitation of Liability for Maritime Claims, adopted by the International Maritime Organisation, as amended by the 1996 Protocol (regulation 4). Special provision is made regarding the liability for delay.

Where a shipowner relies on insurance other than insurance by way of a contract of insurance, the shipowner must obtain the written approval of the Secretary of State before a ship of that shipowner relying on that form of insurance enters United Kingdom waters (regulation 5). The documentation proving the existence of the insurance must be carried on board the ship and be produced on demand (regulation 6). It is an offence to fail to comply with the regulations (regulation 7) and the ship may be detained (regulation 9). Where the validity of a detention is questioned the matter may be referred to arbitration (regulation 10) and compensation awarded (regulation 11). Where an EEA state has issued an expulsion order in accordance with the Directive the Secretary of State must refuse that ship entry to any port in the United Kingdom (regulation 8).

These Regulations require the Secretary of State to review the operation and effect of these Regulations and publish a report setting out the conclusions of that review within five years after they come into force and every five years after that. Following a review it will fall to the Secretary of State to consider whether the Regulations should remain as they are, or be revoked or be amended. A further instrument will be needed to revoke these Regulations or to amend them.

A full impact assessment of the effect these Regulations will have on the costs of the business and the voluntary sector is available from the Maritime Trade and Liability Branch at the Department for Transport, 33 Horseferry Road, London SWIP 4DR. A copy has also been placed in the library of each House of Parliament. The impact assessment and a transposition note are also annexed to the Explanatory Memorandum which is available alongside these Regulations at www.legislation.gov.uk . A copy has been place in the library of both Houses.

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