IMSML Website Article 22/2024: LIST OF RECOGNISED INSURANCE SERVICE PROVIDERS OR FINANCIAL SECURITY SERVICE PROVIDERS BY MALAYSIA MARINE DEPARTMENT FOR ISSUANCE OF CERTIFICATE FOR INTERNATIONAL CONVENTION CLC 1992, BCC 2001, AND WRC 2007 

Ships may suffer from unfortunate circumstances whilst operating at sea. For example, there may be liability for:

[1] Pollution from oil spills under the Civil Liability Convention (CLC) 1992;

[2] Bunker pollution under the International Convention on Civil Liability for Bunker Oil Pollution Damage 2001 (BCC 2001);

[3] Ships becoming either an actual total loss or constructive total loss and triggering compensation under the Nairobi International Convention on the Removal of Wrecks 2007 (WRC 2007).

The aforementioned conventions operate on the basis of a system of liability insurance. The risks arising from these events are spread among various shipowners and operators, thus making compensation a more affordable affair. Hence, industry stakeholders need to have a list of reliable insurers who can provide this type of insurance coverage. The Marine Department (MARDEP) of Malaysia is doing its part by providing a list of recognised insurance service providers who are in a position to provide the requisite certificates for the aforementioned conventions. 

This official recognition is documented via Malaysian Shipping Notice (MSN) 01/2024. Those insurance companies in this list are authorised to provide financial security for the purposes of the conventions above, see Para [1]. Shipowners are required to obtain contracts of insurance from these recognised insurance service providers, see Para [2]. MARDEP will issue a ‘blue card’ or other financial security to the shipowners, see Para [2].

In revoking MSN 04/2023, the new official list of providers are now provided for in Annex 1 of MSN 01/2024. Annex 1 contains a list of:

[1] Insurance companies recognised as complying with the Financial Services Exception Order (FESO), applicable to Malaysian Ships operating in Malaysian Waters;

[2] Insurance companies recognised by the Central Bank of Malaysia, which includes Insurance Companies, Takaful Operators, Re-insurers and Re-Takaful;

[3] A list of International Groups (IG) of Protection and Indemnity Clubs;

[4] A list of Non-International Group Protection and Indemnity Clubs, as well as Insurance Security Providers.

Note, For the full details of Annex 1, please see https://www.marine.gov.my/jlm/wp-content/uploads/2024/01/Annex_I_MSN012024-1.pdf

Thank you for reading IMSML Website Article 22/2024

Stay tuned for the next IMSML Website Article 23/2024: IMPLEMENTATION OF THE NEW CHAPTER XV OF THE INTERNATIONAL CONVENTION FOR THE SAFETY OF LIFE AT SEA (SOLAS), 1974, AS AMENDED, AND THE INTERNATIONAL CODE OF SAFETY FOR SHIPS CARRYING INDUSTRIAL PERSONNEL (IP CODE)

Signing-off for today,

Dr Irwin Ooi Ui Joo, LL.B(Hons.)(Glamorgan); LL.M (Cardiff); Ph.D (Cardiff); CMILT

Professor of Maritime and Transport Law

Head of the Centre for Advocacy and Dispute Resolution

Faculty of Law

Universiti Teknologi MARA Shah Alam

Selangor, Malaysia

Thursday,  14 March 2024

Note that I am the corresponding author for the IMSML Website Articles. My official email address is: uijoo310@uitm.edu.my