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Insurance

Mandatory coverage

What maritime risks must be covered under the law and what is the mandatory level of coverage?

Malaysian registered vessels must be insured by Malaysian licensed insurers. Vessels entering Malaysian waters must also have a certificate of insurance or other financial security as provided under the Civil Liability Convention and the Bunkers Convention. 

Insurable risks and ships

What other risks are typically covered by marine insurance contracts concluded in your jurisdiction and what ships are insurable?

The normal risks covered are the hull and machinery of the vessels covered by marine hull insurance and cargo covered by marine cargo insurance. Protection and indemnity clubs provide liability cover for cargo and other claims, including pollution cover.

Subrogation rights

What is the legal regime governing marine insurers’ subrogation rights?

The UK Marine Insurance Act 1906 governs this area and applies with respect to the choice of English provisions in the marine hull and marine cargo insurance policies. The act also applies with respect to the application of English law pursuant to the Civil Law Act.

Marine accidents

Collision and pollution

What rules and procedures (under both domestic and international law) apply to the prevention of, liability for and remedy of:

(a) Collision?

The liability provisions are found in the Merchant Shipping (Collision Regulations ) Order 1984, which incorporates the International Regulations for Preventing Collisions at Sea 1972, as amended on November 19 1981. 

(b) Oil pollution?

The liability provisions are found in the Merchant Shipping Oil and Bunker Oil Pollution Act 1994. The act incorporates into Malaysian law the 1969 Civil Liability Convention and the 1971 Fund Convention.

(c) Other environmental damage caused by a ship?

This is set out in the Environmental Quality Act and its regulations.

Salvage

What is the legal regime governing salvage and general average?

Part X of the Merchant Shipping Ordinance 1952 deals with wreck and salvage. No statutory provisions deal with general average. Both salvage and general average are covered in the English forms of marine hull and cargo insurance. 

Places of refuge

What framework governs access to places of refuge for ships in distress?

The Marine Department uses the National Oil Spill Contingency Plan as a guide in this respect.

Wreck removal

What rules and procedures apply to the removal of wrecks in your jurisdiction?

Part X of the Merchant Shipping Ordinance 1952 deals with wrecks and their removal.

Under what circumstances can the authorities order removal of wreckage?

Where the wreck is likely to become an obstruction or danger to navigation or a public nuisance, the receiver of wrecks can take possession of and raise, remove or destroy the wreck. 

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