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Enhancing Maritime Safety through Liability Directives

This presentation to EU Transport Attachés on the Third Maritime Safety Package covers the Civil Liability of Shipowners Directive from January 2008. It discusses the positive elements such as damage prevention and compensation, along with the International Group of P&I Clubs' viewpoints. Negative elements like the limitation of liability and financial security issues are also addressed, providing insights on insurance evidence and shipowners' responsibilities. The International Group's stances on various measures and conventions are communicated, shedding light on key points for maritime safety enhancements.

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Enhancing Maritime Safety through Liability Directives

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  1. Presentation to EU Transport AttachésThird Maritime Safety Package – Civil Liability of Shipowners Directive Brussels 24 January 2008

  2. The International Group of P&I Clubs Positive Elements Joint Objectives • Prevention of damage and prompt payment of compensation • Encouraging the adoption of International Conventions by member states • General obligation for third party liability insurance cover in the maritime area EU Transport Attaches presentation

  3. The International Group of P&I Clubs Negative Elements (1) Limitation of Liability • two tier limitation (“first step”) • “gross negligence” threshold for vessels flying non 1996 Convention state flags will create uncertainty and “uneven” playing field • EP Legal Affairs Committee opposition as this “might give rise to legal confusion and does not seem to be an effective way to offer better legal protection” EU Transport Attaches presentation

  4. The International Group of P&I Clubs Negative Elements (1) Limitation of Liability • negotiation of limitation rights (“second step”) • conflict with Conventions/UNCLOS-LLMC • negative impact on insurance capacity - no evidence that an increase in liability leads to improvements in safety standards, or the quality of shipping is linked to shipowner responsibility EU Transport Attaches presentation

  5. The International Group of P&I Clubs Negative Elements (2) Financial Security - COFRs • enforcement difficulties • certification difficulties • financial and admin burden on states • up to approx. 50, 000 vessels could require certificates on an annual basis • reduces financial exposure of shipowner • additional certificates to those issued under CLC, HNS, Bunkers EU Transport Attaches presentation

  6. The International Group of P&I Clubs Evidence of insurance? • Vast majority of vessels operating in EU waters already maintain adequate third party liability cover • IG insure approx. 90% of the world’s ocean going tonnage, approx. 36, 000 vessels. • IG Clubs already issue Certificates of Entry (CoE) to all entered vessels as evidence of insurance • CoE already accepted as such evidence in a no. of States/IMO Resolution A 898 EU Transport Attaches presentation

  7. The International Group of P&I Clubs RESOLUTION A.898(21) - GUIDELINES ON SHIPOWNERS' RESPONSIBILITIES IN RESPECT OF MARITIME CLAIMS 3. Shipowners’ responsibilities 3.1 Shipowners should arrange for their ships insurance cover that complies with these Guidelines. 1. Definitions 1.2 Insurance means insurance with or without deductibles, and comprises, for example, indemnity insurance of the type currently provided by members of the International Group of P&I Clubs, and other effective forms of insurance (including self-insurance) and financial security offering similar conditions of cover; EU Transport Attaches presentation

  8. The International Group of P&I Clubs The International Group supports • entry into force of the 1996 LLMC Protocol in all Member States • early ratification of IMO Conventions on HNS, Bunkers and the carriage of passengers • Bunkers entering into force internationally on 21.11.08 • acceptance of a Certificate of Entry as adequate evidence of third party liability insurance EU Transport Attaches presentation

  9. The International Group of P&I Clubs The International Group does not support • the introduction of COFRs • the introduction of compulsory insurance at double the LLMC limit • changing the test for losing the right to limit • dealing with abandonment of seafarers by means of liability insurance • removing the CLC “ceiling” and reviewing the level at which shipowners lose their right to limit liability under LLMC EU Transport Attaches presentation

  10. Presentation to EU Transport Attachés Brussels 24 January 2008

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