Published 01 June 2005
Circular No. 4/2005 June 2005
TO THE MEMBERS OF ASSURANCEFORENINGEN GARD -gjensidig-
Dear Sirs,
Re: Taiwan Marine Pollution Control Act and Compulsory Insurance
The Marine Pollution Control Act of Taiwan was promulgated by Presidential Order on 1 November 2000. The Act specifically addresses liability for marine oil spills, as well as issues of prevention and response in relation to both marine and land-based pollution. The Environmental Protection Administration (EPA) is the competent authority under the Act.
The Act provides that the shipowner shall be liable for damage caused by pollution of the sea by a ship, but the Act does not provide for defences or limits of such liability. The term 'shipowner' is defined to include owner, lessee, agent and operator of a ship. The law requires the shipowner to provide insurance or a guarantee to cover liability under the Act for oil and chemical tankers over 150 gt and all other types of ship over 400 gt. The Act also allows claimants to sue the insurer or guarantor directly. The Enforcement Rules of the Act issued by EPA on September 2001 gave details of the forms of guarantee that may be provided, but did not expand on the other alternative of liability insurance. Various categories of punishment for pollution are also provided for, including fines and prison terms.
The geographic jurisdiction of the Act extends as far as the EEZ.
On 5 August 2004, the EPA issued a circular giving effect to the compulsory insurance or guarantee provisions of the Act. The amounts of liability insurance coverage or guarantee required in accordance with the Act are as follows:
Oil tankers over 150 gt:
oil tankers between 150 gt and 5,000 gt: SDR 4,510,000
oil tankers above 5,000 gt: for each ton in excess of 5,000, an addition of SDR 631 per ton, subject to a maximum of SDR 89,770,000. Oil is defined under the Act as crude oil, heavy fuel, lubricating oil, light fuel, kerosene, lythene or other oils or substances containing oil as may be promulgated by the EPA.
Other vessels over 400 gt or chemical tankers over 150 gt: SDR 400 per ton, or SDR 350,000, whichever is greater.
Fishing vessels or salvage vessels: SDR 200 per ton.
These insurance or guarantee requirements will take effect from 1 July 2005.
The International Group has been discussing with the Taiwan Government whether insurance provided by clubs in the International Group can be used to satisfy the requirements. It would seem that Certificates of Entry issued by clubs in the International Group of P&I Clubs will be considered adequate evidence of insurance for the purposes of the regulations promulgated by the circular of 5 August 2004.
Yours faithfully, GARD AS As agent only for Assuranceforeningen Gard -gjensidig-
Claes Isacson Chief Executive Officer
Gard is a member of
