No. H085/03For release - August 5, 2003
OTTAWA — Transport Minister David Collenette today announced the proposed next steps for introducing the compulsory insurance regime for operators of passenger vessels used for commercial or public purposes under the Marine Liability Act. This provides another opportunity for public input on the proposed regulatory approach.
"We have consulted extensively on this issue and have heard the concerns of stakeholders and the public," said Mr. Collenette. "As a result, we intend to tailor regulations to deal differently with different segments of the marine community."
Compulsory insurance would be implemented for operators of most vessels used by passengers for travel within Canada. For vessels greater than 15 gross registered tons, the objective is to require the operators to maintain insurance against their maximum liability under Part 4 of the Marine Liability Act (MLA).
Operators of vessels 15 gross registered tons and less which are used by passengers for travel within Canada would be required to maintain liability insurance of $1 million if they carry 12 passengers or less, and $2 million for vessels if carrying more than 12 passengers.
The operators of non-motorized or inflatable hull vessels, mainly used in adventure tourism, would be exempted from the compulsory insurance requirement in the MLA in recognition of the unique activities accepted or performed by the passengers using these types of vessels.
Those wishing to comment on the proposed approach to regulations may contact Mr. Jerry Rysanek, Director, International Marine Policy & Liability, by e-mail at rysanej@tc.gc.ca, or by post at Transport Canada, Tower C, Place de Ville, 330 Sparks St., Floor 25, Ottawa, Ontario, K1A 0N5.
Transport Canada will also consider the implementation of compulsory insurance for international passengers as part of its future work on the Athens Protocol 2002, and the possibility of legislative changes to the MLA with respect to vessels used in adventure tourism. All interested parties will be consulted on these issues.
Information on the Marine Liability Act and the compulsory insurance requirements are included in the attached backgrounder.
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Contact:
Christina Van LoonCommunications, Ottawa(613) 993-0055
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BACKGROUNDERMARINE LIABILITY ACT - COMPULSORY INSURANCE
The Marine Liability Act came into force on August 8, 2001. The act combines existing and new marine liability regulations into a single logical framework for claims related to personal injuries, fatalities, pollution and property damage.
The Marine Liability Act provides passengers in Canadian waters with the ability to make claims, and settle them promptly. The Act provides a uniform method for establishing liability that balances the interests of ship owners and passengers and is applicable to all incidents governed by Canadian maritime law. Ship owners and their insurers will benefit from a clearer indication of what they may be liable for, and to what degree. The maximum liability of the shipowner for personal injury or loss of life is about $350,000 per passenger.
In January 2002, Transport Canada commissioned a consultant, The Mariport Group Inc., to research and make recommendations on a new compulsory insurance regime for passengers carried on vessels that are used for commercial or public purposes.
In January 2003, Transport Canada released the consultant's report and asked for public feedback on its recommendations. The department has reviewed this feedback and will now begin drafting the new regulations. These regulations would implement compulsory insurance for operators of:
all commercial vessels over 15 gross registered tons which carry passengers within Canadian waters only. These operators would be required to maintain insurance for their maximum liability under the MLA (i.e $350,000 multiplied by the number of passengers the vessels is authorized to carry). In case of fleet insurance, only the top vessel would be used to determine the required insurance.
all commercial vessels less than 15 gross registered tons engaged in domestic carriage of passengers. These operators would be required to maintain liability insurance of $1 million for vessels carrying 12 passengers or less, and $2 million for vessels carrying above 12 passengers. These limits would apply to any operator of a single vessel or a fleet of vessels in this category.
The operators of non-motorized or inflatable hulled vessels, used mainly in adventure tourism, would be exempted from the compulsory insurance requirements in recognition of the unique activities these vessels offer to passengers.
August 2003
