Compulsory Insurance Regulations for Vessels Carrying Passengers

PDF Format

Overview

• Background on the Marine Liability Act
• Proposal
• Background
• Application
• Description
• Enforcement
• Preliminary discussions with stakeholders
• Next Steps

Background on the Marine Liability Act

• The Marine Liability Act came into force in 2001, and was amended in 2009.
• The Marine Liability Act is a comprehensive Act dealing with the liability of marine operators in relation to passengers, cargo, pollution and property damage.
• Passenger liability provisions are based on the 1974 Athens Convention and its 1990 Protocol.
• Operator’s limit of liability under the MLA is approximately $300,000 per passenger.

 

Background

• “True North II” incident in Georgian Bay (June 2000) resulted in the drowning of two children. The operator had no insurance.
• Ministerial commitment was made to introduce compulsory insurance regulations.
• Initial consultations were held across Canada in 2002/03 (Mariport Group).
• Following consultations, the Marine Liability Act was amended in June 2009 to:
• exclude adventure tourism operations;
• introduce enforcement provisions.

Application

• Proposed regulations would apply to:
  • all commercial and public vessels that engage in the domestic carriage of passengers.
• Proposed regulations would NOT apply to:
  • adventure tourism activities (37.1(1) of the MLA);
  • passenger vessels used solely in international carriage;
  • Coast Guard Auxiliary Vessels, but only when engaged in Search and Rescue Operations;
  • Government owned vessels operated by the Government of Canada or a provincial/territorial Government, including federal, provincial or territorial Crown Corporation.

Description

• Vessels engaged in the domestic carriage of passengers would be required to carry liability insurance in the amount of:
  • approx. $300,000 X number of passengers.
• Proof of Insurance:
  • Vessel owners would be required to show proof of insurance on demand and have it onboard the vessel and placed in a visible location.

Enforcement

• Section 126 of the Act gives the power to designate enforcement officers.
• Failure to produce, on demand, the proper 7 insurance coverage could result in:
  • Vessel detention;
  • On summary conviction, to a fine not exceeding $100,000.

Preliminary Discussions with Stakeholders

• Transport Canada held preliminary discussions with operators and marine insurers across Canada in fall 2010 and winter 2011. 8
• Transport Canada will take stakeholders’ comments into account when drafting a regulatory proposal.

Next Steps

• Review Comments and Proceed with Legal Drafting - Fall 2011
• Consult on Proposed Regulations - Winter 2012
• Pre-publication in the Canada Gazette, Part I - Spring 2012
• Publication in the Canada Gazette, Part II - Summer/Fall 2012

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Compulsory Insurance Regulations for Vessels Carrying Passengers (222 KB)  

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