The European Union (Insurance Of Shipowners For Maritime Claims) Regulations 2011 (SI 686/2011) (the "Regulations") have been passed to transpose Directive 2009/20/EC (the "Directive") into Irish law. The deadline for transposition was 1 January 2012 and the Regulations came into operation on 1 January 2012 to give effect to the Directive.

Under the Directive, each EU Member State must require shipowners operating ships of 300 gross tonnage or more to have insurance in place when such ships enter a port under the EU Member State's jurisdiction. EU Member States must also require shipowners of ships flying its flags to have insurance covering such ships.

The insurance required comprises, for example, indemnity insurance of the type currently provided by members of the International Group of P & I Clubs, and other effective forms of insurance (including proved self-insurance) and financial security offering similar conditions of cover. It is required to cover maritime claims subject to limitation under the 1996 Protocol on Limitation of Liability for Maritime Claims ("1996 LLMC"). The amount of the insurance for each and every ship per incident must be equal to the relevant maximum amount for the limitation of liability as laid down in the 1996 LLMC.

The existence of the insurance must be proved by one or more certificates issued by its provider and carried on board the ship. The relevant authorities in each EU Member States can inspect a ship and if the certificate is not on board, the EU Member State may issue an expulsion order to the ship and impose penalties. The ship will also be refused entry into every other EU Member State.

The Regulations provide that an owner of a ship who fails to hold the required insurance is guilty of an offence and liable on summary conviction to a Class A fine or imprisonment for a term not exceeding 12 months or both.

Under the Regulations, the owner of a ship flying the flag of another state (i.e. the flag of any state and not just that of an EU Member State) must have insurance when it enters an Irish port and must ensure that a certificate is carried on board the ship. The owner of the ship must furnish the competent authority with the name of the provider of the insurance, the type, the commencement date and the number of the insurance contract, using SafeSeasIreland (or where that is unavailable by telephone, fax, e-mail or other electronic means) at least 24 hours in advance of the ship's estimated time of arrival at the port in the EU Member State for which the ship is bound. If the voyage time is estimated to be less than 24 hours, then the information must be furnished not later than the time the ship leaves the previous port, or if the port in the EU Member State is not known at the time of the ship's departure from the previous port, or it is changed during the voyage, as soon as the port in the EU Member State for which the ship is bound is known.

The certificate issued by the insurance provider must contain the following information:

(a) the name of the ship, its IMO number, and its port of registry;

(b) the owner's name and principal place of business;

(c) the type and duration of the insurance; and

(d) the name and principal place of business of the provider of the insurance and, where appropriate, the place of business where the insurance is established.

If the owner fails to meet these requirements, then an expulsion order will be issued. The Regulations provide that an expulsion order may be appealed to a judge of the Circuit Court within 24 hours, however this will not cause the expulsion order to be suspended pending the outcome of the appeal.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.