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Frequently Asked Questions (FAQs)

Regulations and Standards

What’s the difference between regulation and policy? ^

Regulations establish requirements that can be enforced by law. In cases where, for whatever reason, there is a gap in the requirements, Transport Canada may use policy to establish appropriate safety criteria. While policy does not have the force of law, in order to carry out Transport Canada’s safety mandate, inspectors verify compliance with policy criteria. Owners and operators are advised of deficiencies and encouraged to comply. 

What’s the difference between regulations and Transport Publications (TPs)? ^

Before issuing a certificate, a Transport Canada Inspector must be satisfied that the vessel provides an appropriate level of safety. Transport Canada Inspectors determine what is appropriate by determining how the vessel will be used, then referring to the Regulations and Technical Publications (TPs) that apply to the vessel type and operation. Regulations are the legal requirements and must be met. TP's, while not law, are guides or standards used to set out Transport Canada's view on what is appropriate. Where TP's are referenced by the regulations, the requirements of the TP must be complied with. 

What are the requirements under the proposed compulsory insurance regulations? Do I have to have this insurance in place now? ^

Operators of vessels 15 gross tons and less which are used by passengers for travel within Canada will 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. 
Operators of vessels greater than 15 gross tons will be required to maintain coverage of $350,000 multiplied by the number of passengers the vessels is authorized to carry. 

The compulsory insurance requirements will not apply to non-motorized and/or inflatable-hulled vessels. Operators of these vessels should keep in mind that although they will not be required to maintain insurance, they are still part of the Act, and as such, the other provisions of the Act, including liability provision, still apply. 

In case of fleet insurance, the vessel with the greatest passenger capacity will be used to determine the required amount of insurance.

Do I have to have this insurance in place now?

No, until the regulations come into force you are free to set any level of insurance you and your broker feel is appropriate. The regulations are expected to be in place by summer, 2005. 

Do I have to comply with Transport Canada regulations? ^

Yes - regulations and the people who comply with them save lives. If your vessel is found to be incompliant, your vessel may be detained and in some provinces you may be fined. 

Regulations are laws. You must follow the requirements of a regulation. Where a regulation refers to a TP, the requirements of the TP must be met as well. However, regulations can’t cover all possible configurations of vessels and types of operation. Where gaps exist, TPs and other publications, including Transport Canada policies and Ship Safety Bulletins, are used by inspectors as reference for current best practice in order to determine an appropriate level of safety. 


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