The Merchant Shipping (Shipowners' Insurance for Maritime Claims) Law 14(I)/2012, which transposes EU Directive 2009/20/EC into national law, has entered into force following enactment by the House of Representatives and publication in the Official Gazette.(1)
The law requires owners of ships with gross tonnage equal to or more than 300 gross tonnes that fly the Cyprus flag or, irrespective of flag, call at Cyprus ports or operate within Cyprus's territorial waters to have insurance in place in respect of maritime claims subject to limitation under the 1996 Convention on Limitation of Liability for Maritime Claims and as required by the directive. Acceptable cover includes:
- protection and indemnity insurance of the type provided by members of the International Group of Protection and Indemnity Clubs;
- other effective forms of insurance (including proven self-insurance); and
- financial security offering similar conditions of cover.
Documentary evidence of cover must be kept onboard ship.
The law empowers the shipping authorities to monitor compliance and provides for an administrative fine of up to €8,500 for failure to comply with its requirements. More serious breaches of the law are punishable by imprisonment for up to two years, a fine of up to €10,000, or both.
For further information on this topic please contact Costas Stamatiou at Andreas Neocleous & Co LLC by telephone (+357 25 110 000), fax (+357 25 110 001) or email ([email protected]).
Endnotes
(1) An unofficial translation of the law is available on the website of the Department of Merchant Shipping: www.mcw.gov.cy/mcw/dms/dms.nsf/All/A7D7AF9CCD517E14C22579C90033C303/$file/15-2012%20(22-03-2012).pdf?OpenElement.