Regulations Respecting Compulsory Insurance for Ships Carrying Passengers
P.C. 2018-1427 2018-11-22
Her Excellency the Governor General in Council, on the recommendation of the Minister of Transport, pursuant to paragraphs 39(a)Footnote a and (b)Footnote a of the Marine Liability ActFootnote b, makes the annexed Regulations Respecting Compulsory Insurance for Ships Carrying Passengers.
Marginal note:Definition of Act
2 (1) These Regulations apply to
(a) the carriage by water, under a contract of carriage, of passengers from one place in Canada to the same or another place in Canada, either directly or by way of a place outside Canada; and
(b) the carriage by water, otherwise than under a contract of carriage, of persons from one place in Canada to the same or another place in Canada, either directly or by way of a place outside Canada, excluding
(i) the master of a ship, a member of a ship’s crew or any other person employed or engaged in any capacity on board a ship on the business of the ship,
(ii) a person carried on board a ship other than a ship operated for a commercial or public purpose,
(iii) a person carried on board a ship in pursuance of the obligation on the master to carry shipwrecked, distressed or other persons or by reason of any circumstances that neither the master nor the owner could have prevented, and
(iv) a stowaway, a trespasser or any other person who boards a ship without the consent or knowledge of the master or the owner.
(2) These Regulations do not apply to
(a) an adventure tourism activity that meets the conditions set out in subsection 37.1(1) of the Act;
(b) the carriage of a sail trainee or a person who is a member of a class of persons prescribed under paragraph 39(d) of the Act;
(c) search and rescue operations that are carried out by the Canadian Coast Guard Auxiliary;
(d) a carriage performed by the Government of Canada or the government of a province, or by an entity that is entitled to indemnification by that government for liability under Part 4 of the Act; or
(e) a carriage by a pleasure craft as defined in section 2 of the Canada Shipping Act, 2001.
Marginal note:Coverage for damages for death or personal injury
3 (1) A person who performs the whole or part of a carriage by ship must maintain liability insurance coverage for damages for death or personal injury caused by an incident that occurs in the course of the carriage and is due to the fault or neglect of the person or of the person’s servants or agents or mandataries acting within the scope of their employment.
Marginal note:Minimum amount
(2) The coverage must be for an amount that is not less than $250,000 multiplied by the passenger capacity of the ship.
Certificate of Insurance
Marginal note:Requirement to carry
4 (1) The person referred to in subsection 3(1) must ensure that proof of insurance, signed by the insurer or its authorized representative, is carried on board the ship as proof that the insurer has issued a liability insurance policy to the person for the liability insurance coverage required by section 3.
Marginal note:Form of proof of insurance
(2) The proof of insurance referred to in subsection (1) may be in paper or electronic form and must be
(a) if the ship is covered by a protection and indemnity club that is a member of the International Group of Protection and Indemnity Associations, the certificate of entry issued by the club in respect of the ship; or
(b) in any other case, a certificate of insurance in the form set out in the schedule.
(3) If the liability insurance policy provides coverage in respect of a fleet of ships to which paragraph (2)(b) applies, the person referred to in subsection 3(1) must ensure that a certificate of insurance in the form set out in the schedule is carried on board one ship and a copy of it is carried on board every other ship in the fleet.
(4) Despite subsection (1), a person is not required to carry proof of insurance on board a ship if
(a) it is not feasible to do so because the ship does not have any space where the proof of insurance can be protected from the elements; or
(b) in the case of proof of insurance kept on an electronic device, it is not possible to display the certificate due to technical reasons.
Marginal note:Production within 24 hours
(5) If a designated officer boards the ship under subsection 128(1) of the Act and the proof of insurance is not carried on board the ship due to a reason set out in subsection (4), the person referred to in subsection 3(1) must produce the proof of insurance to the designated officer within 24 hours after the designated officer boarded the ship.
Marginal note:Fleets — amount of insurance
(6) In the case of a liability insurance policy that provides coverage in respect of a fleet of ships to which paragraph (2)(b) applies, the certificate of insurance must
(i) the amount of insurance applicable to each ship in the fleet, or
(ii) the amount of insurance applicable to the ship in the fleet with the highest passenger capacity and the number of ships in the fleet to which that amount applies; and
(b) state that the policy provides the same coverage as the coverage that would be provided if a separate policy had been issued in respect of each ship listed on the certificate.
Marginal note:Exceptions to form of certificate
(7) In the case of a liability insurance policy that provides coverage in respect of a fleet of ships to which paragraph (2)(b) applies,
(a) if a ship is exempted under the regulations made under the Canada Shipping Act, 2001 from the registration requirement set out in subsection 46(1) of that Act, the name of the ship and its official number are not required to be set out on the certificate of insurance; and
(b) if proof of insurance is in paper form and the fleet has more ships than can be listed on the front of the certificate of insurance, the information regarding the ships that cannot be listed on the front of the certificate must be set out on the back.
5 Sections 3 and 4 do not apply until
(a) in the case of a person referred to in subsection 3(1) who, at the end of the day before the day on which these Regulations come into force, holds a liability insurance policy that provides coverage for death or personal injury caused by an incident that occurs in the course of a carriage by ship, the moment at which the first of the following events occurs:
(i) the policy expires,
(ii) the cancellation of the policy takes effect, or
(iii) the modification of the policy takes effect; and
(b) in any other case, the 60th day after the day on which these Regulations come into force.
Coming into Force
Marginal note:30th day after publication
- Date modified: