Introduction of Compulsory Insurance Requirement for No-tanker Ships

 

 


International and Seculity Policy Office

General Affairs Division Maritime Bureau

TEL 03-5253-8111 (Extension 43-268)

03-5253-8616 (Direct)

 

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The Ministry of Land, Infrastructure and Transport (MLIT) has added on a new insurer to the Designated Insurer on December.26.2007. Click here!   

The Ministry of Land, Infrastructure and Transport (MLIT) has added on a new insurer to the Designated Insurer on September.27.2007.  

Provisions for The Designated Insurer designated by Ministor of Land, Infrastructure and Transport based on Article 39-7 Section 3 have Changed For details of provisions, Click here!.    

 

The Ministry of Land, Infrastructure and Transport (MLIT) has added on a new insurer to the Designated Insurer on Feb.14.2007.    

 

The minimum limit of liability will be raised due to activate the Convention(96LLMC) from next August 2006.

  For details, Click here!

 



 

 

 

 

 

 



1. Outline

Japanese Government has amended gthe Law on Liability for Oil Pollution Damageh in order to tackle the problem of abandoned-shipwreck in Japanese coastal waters. Under this law, conclusion of P&I insurance will be for ships engaging international navigation. From March 1, 2005, the owner of a ship engaging international navigation must fulfill the following requirements for entry.

- have P&I insurance for the ship

- carry the relevant certificate on board

- report the status of insurance before entering a port or any Designated Sea Area*

Descriptions in this page are simplified to facilitate understanding of the regulation. Please refer to original text of the Law and relevant ordinances for precise understanding.

*Designated Sea Area means Tokyo bay, Isewan and Seto Inland Sea.
       
        (Brochure)

Chinese Version

English Version

Japanese Version

Korean Version

Russian Version

 (Law and ordinances)( Japanese texts are as foiiows..)

Law on Liability for Oil Pollution Damage, 1975

Supplementary Law on Liability for Oil Pollution Damage, 1975

Government Ordinance for Law on Liability for Oil Pollution Damage, 1975

Supplementary Government Ordinance for Law on Liability for Oil Pollution Damage, 1975

Ministerial Ordinance for Law on Liability for Oil Pollution Damage, 1975

Supplementary Ministerial Ordinance for Law on Liability for Oil Pollution Damage, 1975

Forms of the Ministerial Ordinance

Supplementary Forms of the Ministerial Ordinance

The designated insurers on compulsory insurance requirement for non-tanker ships calling to Japanese Ports in accordance with the Article 39-7 paragraph 3 of the Law on Liability for Oil Pollution Damage

Notification of the tonnage in accordance with the Article2 paragraph 2 sub- paragraph 2 of the government ordinance of the Law on Liability for Oil Pollution Damage

(English text as follows only law is available.)

Law on Liability for Pollution Damage,1975

 

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2. Compulsory Insurance

Compulsory insurance requirement for non-tanker ship will be introduced from March 1, 2005. Ships that do not have P&I insurance after that date will be denied to enter any Japanese port.

(1)Scope of Application

The new compulsory insurance requirement applies to all ocean-going ships (excluding oil tankers) that are of 100 gross tonnage or larger. State-owned ships are exempt from the application of the law.

Note1: Oil tankers are already required to have insurance under the International Convention on Civil Liability for Oil Pollution.

Note2:The new requirement also applies for one -way-navigation from a port in Japan to a port in foreign country, for example, in the event of selling used Japanese vessels to foreign countries.

(2)Requirement of Insurance

(i) Insurance must be provided coverage for the following risks;

- Damage caused by bunker oil pollution

                 and

- Expenses of removing shipwreck

 

(ii) Amount of the insurance coverage must be equal at least to the sum of;

- The limit of liability for claims for loss of life or personal injury as well as material damage (Article 7, paragraph 1, subparagraph 2 of the Law on Liability Limitation of Ship owner)

                 and

- The limit of liability for claims for material damage (Article 7, paragraph 1, sub-paragraph 1 of the Law on Liability Limitation of Ship owner)

 

Note: The Law on Liability Limitation of the ship owner is consistent with the International Convention on Limitation of Liability for Maritime Claims, 1976 (76LLMC)

 

(Calculator for minimum amount of insurance)

Excel file for calculating of minimum amount of insurance for Non-tanker Ships

 

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3. Carrying a Relevant Certificate on Board

(1) Outline

When the ships are visiting a Japanese port, the certificate of insurance must be on board. The Minister of Land, Infrastructure and Transport issues the certificate in response to the application from the ship owner or its agent. The application for issuing the certificate will be accepted from December 1, 2004 at District Transport Bureaus, which are the local offices of the ministry. (The regulations about the certificate for the oil tanker are same as before.)

Please be reminded that one month or more are required to issue the certificate of insurance. In exception of the above, if the ship owner has concluded a contract with an insurer(s) that is designated by the Minister of Land, Infrastructure and Transport as P&I clubs belonged to the International Group of P&I Clubs and etc.,iThe designated insurers on compulsory insurance requirement for non-tanker ships calling to Japanese Ports in accordance with the Article 39-7 paragraph 3 of the Law on Liability for Oil Pollution Damagej the original or the certified copy of gthe Certificate of Entryh issued by the insurer will be accepted as a substitute for the certificate of insurance issued by the Minister. The provisions for this Designated Insurer are as follows. For detail of provisions Click here!.

(2) Procedure of the application

Please refer to the gHow to apply for Certificate of Financial Security for Non-tanker Shipsh. When applying for first time, we recommend consulting with the District Transport Bureau before the formal application is made.

Commencement date of reception of the applicationcccFrom December 1, 2005

Applicantcccc the person who contracts with insurance (An agent can also apply on behalf of the applicant.)

Submitting DocumentccccThe application for Issuance of Certificate of Financial Security for Non-tanker Ships (Form No.6) AND

A Copy of the contract of financial security AND

Certificate of the flag of ship and tonnage AND

The document that proves the agent is duly empowered by the applicant (Only when applying via the agent)

The charge for the applicationccc   Revenue stamps of 14,300yen value per ship must be stuck to the application form. (There are some variations depending on the type of the application)

Office receiving the applicationccc  One of main offices of the District Transport Bureau or the Okinawa General Bureau


 When your certificate is expired or invalid, it must be returned to your convenience local office as below.

  @yHow toz

  @@By direct mail or hand to hand.

 

(Application Forms)

Form No.6

Form No.6 with Chinese translation

Form No.6 with English translation

Form No.6 with Korean translation

Form No.6 with Russian translation

Note: The application form with Chinese, Korean, or Russian translation are non-official and for informational use only. These forms cannot be used for official application and translations have no legal effect on interpretation of the form.

(How to apply for certificate of financial security for non-tanker ships)

Chinese Version

English Version

Japanese Version

Korean Version

Russian Version

Note: The application form with Chinese, Korean, or Russian translation are non-official and for informational use only. These translations have no legal effect on interpretation of the form.

Please refer to Japanese Version or English Version for a more exact understanding.

 

 

 

4. Report of the status of insurance

(1) Outline

The captain or its agent in Japan of the non-tanker ship as well as the oil tanker carrying more than 2000 tons of oil in bulk as cargo shall report the status of the insurance and identification information of the ship to the District Transport Bureau before entering a port or any Designated Sea Area* in the designated report form.

(2) Procedure of Reporting

Commencement date of receiving of reporting cc March 1, 2005

Scope of Application ccc.      A non-tanker Ship of 100 tonnage or larger that intends to enter any Japanese port from the foreign port OR

A non-tanker Ship of 100 tonnage or larger that intends to enter any Designated Sea Area from a foreign port OR

An oil tanker carrying more than 2000 tons of oil in bulk as cargo that intends to enter any Japanese port from the foreign port

Note: Designated Sea Area means Tokyo bay, Isewan and Seto Inland Sea.

Person who must reportccc  Captain, Ship owner or the agent of the captain or the ship owner

The bureau to which the report must be directed cThe main office of the District Transport Bureau or Okinawa General Bureau that controls heading port.

Timing of reporting ccc Report must be done at the latest by noon on previous day which is NOT holiday of the bureau.

Means of reportingccc The report is received by hand, mail or fax. (Email will not be accepted.)

 

Note: Report form and details of procedure will be prepared soon.

 

Report_form

How to submit the Report on the Financial Security Information Under the Law on Liability for Oil Pollution Damage

 

 

TD Boarding Inspection, Government Order and Penalty

yInspectionz

Government officers including PSC officers may board the ship to inspect relevant certificate. In such a case, the captain and/or crews must follow their instructions.

yOrderz

The order to establish the financial security or detention order, if necessary, would be issued to the captain and/or the shipowner in the case of violation of the law.

yPenaltiesz

The penalties are applied for following cases.

- enter the port without maintaining appropriate insurance cover or other financial security                       

 (penal servitude for a term not exceeding one year or a fine not exceeding 500,000 yen)

- be issued or reissued the certificate by false applicant

(penal servitude for a term not exceeding one year or a fine not exceeding 500,000 yen)

- enter the port without carrying relevant certificates on board                  (a fine not exceeding 300,000)

- enter the port without reporting or report false information                    (a fine not exceeding 300,000)

- refuse to answer to inquiries by government officers or make false representations to government officers      (a fine not exceeding 300,000)

- your certificate is not returned to local office even if your certificate is expired or invalid

@- Other cases provided by the law


U. Inquiry

@If you have any question, please inquire one of following offices. If you want to have consulting about procedures of the application, please ask one of regional offices.

 

 

Telephone

Facsimile

@Head Office of the Ministry

Office of Maritime Security and Liability for Accident, Maritime Bureau

+81-3-5253-8616

+81-3-5253-1642

E-mail: maritime@mlit.go.jp

@District Transport Bureau (Regional Office)

Hokkaido District;

Ship Safety and Maritime Environment Division, Maritime Safety and Environment Department

+81-134-27-7181

+81-134-23-4221

Tohoku District;

Ship Safety and Maritime Environment Division, Maritime Safety and Environment Department

+81-22-791-7516

+81-22-299-8884

Kanto District;

General Affairs Division, Maritime Safety and Environment Department

+81-45-211-7222

+81-45-662-6192

Hokuriku Shinetsu District;

Ship Safety and Maritime Environment Division, Maritime Safety and Environment Department

+81-25-244-6113

+81-25-248-7271

Chubu District;

Ship Safety and Maritime Environment Division, Maritime Safety and Environment Department

+81-52-952-8021

+81-52-952-8083

Kinki District;

General Affairs Division, Maritime Safety and Environment Department

+81-6-6949-6423

+81-6-6949-6528

Kobe District;

Ship Safety and Maritime Environment Division, Maritime Safety and Environment Department

+81-78-321-7054

+81-78-321-0966

Chugoku District;

Ship Safety and Maritime Environment Division, Maritime Safety and Environment Department

+81-82-228-8794

+81-82-228-3468

Shikoku District;

Ship Safety and Maritime Environment Division, Maritime Safety and Environment Department

+81-87-825-1189

+81-87-821-5732

Kyushu District;

General Affairs Division, Maritime Safety and Environment Department

+81-092-472-3173

+81-092-472-3305

Okinawa;

Ship and Seafarer Division, Transport Department

+81-98-866-1838

+81-98-860-2280

 

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