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Recommendations on Regulations on Compulsory
Passenger Insurance Pursuant to Marine Liability Act
(Part 4, Section 39)
Prepared by The Mariport Group LTD. for
TRANSPORT CANADA Marine Policy
FINAL REPORT
This report, received by Transport Canada in November 2002, reflects the views of the authors and are not necessarily
those of Transport Canada
The Mariport Group Ltd
Specialized advisory services for ports & the shipping industry
Regulations on Compulsory Passenger Insurance
Pursuant to Marine Liability Act (Part 4, Section 39)
TRANSPORT CANADA
Marine Policy
FINAL REPORT October 2002
The Mariport Group Ltd. 41 Parkhill Road East
P.O. Box 1758
Cambridge, Ontario
Canada N1R 7G8
CONTENTS
1. Summary
1.1 Assumptions
1.2 Highlights
1.3 Recommendations
1.4 Impacts
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2. MLA Vessels
2.1 Overnight cruise ships
2.2 Canadian and US Flag Ferries
2.3 Day cruise
2.4 Adventure tourism
2.5 Charter fishing
2.6 General utility craft
2.7 Permanently moored craft
2.8 Other vessels
3. Insurance Market
3.1 State of the market
3.2 Current market capacity
3.3 Limitations of Canadian insurers
3.4 Current practices
3.5 Impact of regulation on marine passenger insurance
3.6 Insurance trade and competition
3.7 Premium outflow to foreign markets
3.8 Current and future premium costs
3.9 Quality of insurance carriers
3.10 Uninsured and uninsurable operators
3.11 Tracking of insurance requirements
3.12 Scope of application
4. Monitoring
4.1 The designated authority - the gatekeeper
4.2 Party to provide evidence of insurance
4.3 Compliance enforcement
5. Filters
· Dragon boats
· Sail training ships
· Charter yachts
· Small boat rental operators & outfitters
· Canoes & kayaks
6. Data Base
6.1 Estimated coverage by sector
6.2 Original data resources
6.3 Communication with operators
7. Other Maritime Environments with Compulsory
Passenger Liability Insurance
7.1 Australia
7.2 China
7.3 Croatia
7.4 Hong Kong
7.5 Philippines
7.6 Sweden
7.7 United Kingdom
7.8 USA
7.9 I.M.O. Activities
7.10 European Union
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8. Annexes
8.1 Communications
8.1.1 - Web material and downloads
8.1.2 - Workshop text
8.1.3 - Insurance industry contacts
8.1.4 - Insurance requirements for marine adventure tourism operators
8.2 Marine safety bulletins
GLOSSARY OF ABBREVIATIONS
AB Able Seaman
CBMU Canadian Board of Marine Underwriters
CCRA Canada Customs & Revenue Agency
CD-ROM Compact Disc - Read Only Memory
CFOA Canadian Ferry Operators Association
CGL Commercial General Liability
CPVA Canadian Passenger Vessel Association
CSA Canada Shipping Act
CVLP Commercial Vessel Licencing Programme
DFO Department of Fisheries and Oceans
GRP Glass Reinforced Plastic
IBC Insurance Bureau of Canada
IMO International Maritime Organization
MIA Marine Insurance Act
MLA Marine Liability Act
OSFG Ontario Sport Fishing Guides Association
PAI Personal Accident Insurance
P&I Protection and Indemnity
PFD Personal Flotation Device
SCALA Standard Compensation Act Liability Association
TC Transport Canada
US United States
VTZ Vessel Traffic Services Zone
REGISTRATION & SAFETY REGULATIONS OF
CANADIAN PASSENGER VESELS
At various points in this report, reference is made to the Canadian Ship
Register and the Commercial Vessel Licencing Programme. The following provides
an explanation of these terms.
Ship Registry
All Canadian vessels of 15grt and above are required to be registered.
Canadian vessels under 15 GRT may be registered voluntarily. This service is
provided by Transport Canada. The Ship Registry is a system of international
identification of, and title to, Canadian vessels. It is a public record of the
identity of vessels and their owners and mortgage holders, as well as being a
record of Authorized Representatives for commercial registered vessels. The
Authorized Representative of each commercial registered vessel is responsible
for regulatory compliance with the Canada Shipping Act.
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Commercial Vessel Licencing Programme
Formerly all Canadian vessels with engines above 9.9 horsepower, if not
registered, were required to be licenced under a Programme administered by
Revenue Canada. Recent government reorganization has given regulatory
responsibility for pleasure craft to the Department of Fisheries and Oceans and
for commercial vessels to Transport Canada. For the time being, DFO is
continuing to require that powered pleasure craft be licensed through the Canada
Customs and Revenue Agency. Pleasure craft licensing will continue, but may be
run differently in the future.
All commercial vessels which are not registered are required to have a
commercial vessel licence. The Marine Safety Guideline 14/2000, which is also
referenced in this report, is a part of the ongoing dialogue between industry
and Transport Canada Ship Safety to distinguish between pleasure craft, which
are regulated by DFO, and commercial craft, which are regulated by Transport
Canada. Mariport has been advised that this guideline will be modified by early
2003 to clarify a number of grey areas, and will be incorporated into the
regulations for CSA 2001.
Although the Commercial Vessel Licencing Programme (CVLP) is run by the same
branch of Transport Canada as the ship registry, the CVLP is not a registration
system in the sense that large vessel ship registries are understood
internationally. Unlike a vessel registry for larger vessels, the CVLP is not
evidence of title, does not permit the registration of ship mortgages and the
information in the licensing program about licenced vessel owners who are
individual persons is not accessible to the public. The CVLP is intended to
identify the owners of all commercial vessels that are not registered, for
regulatory purposes. This programme is being phased in and will not become fully
operational until 5 years following the completion of the regulatory process for
the entry into force of the new Canada Shipping Act, 2001. This time
delay is in recognition of the very large number of such craft in Canada, and
the need to communicate with all owners.
Safety Regulation
The TC Ship Registry and the CVLP are not concerned with safety regulation
such as hull construction, equipment and passenger capacity. Passenger capacity
is regulated by TC Ship Safety, who inspect and issue the appropriate annual
certificates to all vessels carrying 12 or more passengers. TC Ship Safety also
has established a system for initial inspection and approval of the construction
and equipment of small vessels at the time they are built or converted for
commercial passenger use, with requirements that the owners follow standards and
regulations in the future. This safety inspection and regulatory system covers
both small passenger vessels whose owners voluntarily chose to register in the
ship registry, and all other Canadian small commercial passenger vessels, which
are required to have a commercial vessel licence.
This report has been prepared
specifically for Transport Canada in October 2002. Whilst all due
care and diligence has been exercised in the collection of data for
and the preparation of this report, The Mariport Group Ltd. provides
an advisory service only, based on the opinion and experience of the
individual consultant responsible for its compilation. The Mariport
Group Ltd. issues such advice in good faith and without prejudice or
guarantee. Anyone wishing to rely on such opinions should first
satisfy themselves as to the feasibility of the recommendations and
accuracy of the data upon which the opinions are based. |
TEAM MEMBERS
The Mariport Group Ltd. |
Project Management |
Anthony Brain |
Braden Marine |
Alice Dunning |
Harbour Risk Management |
Jonathan Seymour |
J.S. Seymour & Associates |
William Sharpe |
Barrister & Solicitor |
Christopher Wright |
The Mariport Group Ltd |
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