(1) Every registered owner of an Indian vessel of gross tonnage of three hundred and above shall, for the purposes of covering his liability under this Chapter, be required to maintain compulsory insurance coverage or such other financial security, as may be prescribed.
(2) Every ship owner or operator of a ship other than an Indian vessel of gross tonnage of three hundred and above, while it is in the area to which this Chapter applies, shall maintain insurance coverage or other financial security to cover his liability under the Convention and shall carry onboard a certificate to that effect.
(3) The certificate referred to in sub-section (2) shall, in case the ship is,---
(a) registered in India, be granted by the authority;
(b) registered in a Convention State other than India, be granted by or under the authority of the Government of that State; and
(c) registered in a State which is not a Convention State, be granted or certified by the appropriate authority authorised by any Convention State.
(4) Any ship which contravenes the provisions of sub-section (2), shall be liable to be detained by the authority.
(5) Any claim for costs arising under this Chapter may be brought directly against the insurer or other person providing financial security for the registered ship owner’s liability and in such a case, the insurer or such person may invoke defences (other than bankruptcy or winding up of the company) which the registered ship owner would have been entitled to invoke, including limitation of liability as provided under this Act:
Provided that where the registered ship owner is not entitled to limitation of liability under this Act, the insurer or such person may limit liability to an amount equal to the amount of the insurance or other financial security required to be maintained under sub-section (1):
Provided further that the insurer or such person may invoke the defence that the maritime casualty resulted from the wilful misconduct of the registered ship owner but shall not invoke any other defence which such insurer or person might have been entitled to invoke in proceedings brought by the registered ship owner against such insurer or person:
Provided also that the insurer or such person shall have the right to require the registered ship owner to be joined in such proceedings.
(2) Every ship owner or operator of a ship other than an Indian vessel of gross tonnage of three hundred and above, while it is in the area to which this Chapter applies, shall maintain insurance coverage or other financial security to cover his liability under the Convention and shall carry onboard a certificate to that effect.
(3) The certificate referred to in sub-section (2) shall, in case the ship is,---
(a) registered in India, be granted by the authority;
(b) registered in a Convention State other than India, be granted by or under the authority of the Government of that State; and
(c) registered in a State which is not a Convention State, be granted or certified by the appropriate authority authorised by any Convention State.
(4) Any ship which contravenes the provisions of sub-section (2), shall be liable to be detained by the authority.
(5) Any claim for costs arising under this Chapter may be brought directly against the insurer or other person providing financial security for the registered ship owner’s liability and in such a case, the insurer or such person may invoke defences (other than bankruptcy or winding up of the company) which the registered ship owner would have been entitled to invoke, including limitation of liability as provided under this Act:
Provided that where the registered ship owner is not entitled to limitation of liability under this Act, the insurer or such person may limit liability to an amount equal to the amount of the insurance or other financial security required to be maintained under sub-section (1):
Provided further that the insurer or such person may invoke the defence that the maritime casualty resulted from the wilful misconduct of the registered ship owner but shall not invoke any other defence which such insurer or person might have been entitled to invoke in proceedings brought by the registered ship owner against such insurer or person:
Provided also that the insurer or such person shall have the right to require the registered ship owner to be joined in such proceedings.
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More sections of this act
Section 1 · Short title and commencement.Section 2 · Application of Act.Section 3 · Definitions.Section 4 · Establishment of National Shipping Board.Section 5 · Constitution of Seafarer’s Welfare Board.Section 6 · Power to make rules.Section 7 · Director-General of Maritime Administration.Section 8 · Officers.India Code, Government of India. Text fetched 25 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.