Canada has set into force the Compulsory Insurance Scheme for Ships Carrying Passenger, with effect from 11 January 2019. As such, 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.
Under these regulations, all commercial and public purpose ships engaged in the domestic carriage of passengers must maintain liability insurance coverage in a minimum amount of C$ 250,000 multiplied by the passenger capacity of the ship.
For example, a vessel with capacity for 30 passengers would need a minimum of C$ 7.5m of cover just for passenger claims.
The regulations apply to:
- Operators engaged in the 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
- Commercial or public purpose ships (where no fare is charged).
The Regulations do not apply to:
- adventure tourism, as defined in subsection 37.1(1) of the Marine Liability Act
- the carriage of a sail trainee
- an international carriage
- a carriage by pleasure craft, as defined in section 2 of the Canada Shipping Act, 2001
- search and rescue operations carried out by the Canadian Coast Guard Auxiliary
- the Government of Canada or the government of a province (because they are self-insured), or an entity entitled to indemnification by that government.
Requirements for fleets
If the liability insurance policy covers a fleet of ships, such as for fishing expeditions or outfitters, you must carry:
- the certificate of insurance on board one ship, and
- a copy of it on board every other ship in the fleet
The certificate of insurance must state:
- the amount of insurance for each ship in the fleet, or
- the amount that applies to the ship with the highest passenger capacity, and the number of ships for which that amounts applies, and
- the policy provides the same coverage as a separate policy for each ship would
If a ship is exempt from registration requirements (under the Canada Shipping Act, 2001), the certificate of insurance does not need to include its name and official number. If there is not enough room to list all ships in the fleet on the front of the insurance certificate, they must be listed on the back.
Members should note that a Certificate of Entry issued by a member Club of the International Group of P&I Clubs will be acceptable evidence of insurance…However vessels carrying passengers that are not insured with a Member Club of the International Group will be required to carry a Certificate of Insurance in the specific form prescribed under the Regulation,
…Shipowners Club clarified.
