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06/05/2005 Taiwan: New Insurance Requirement

The Taiwanese government has recently promulgated a regulation under Article 33 of the Marine Pollution Control Act 2000.

Under this regulation , which is scheduled to take effect on July 1st 2005, the owner of an oil or chemical tanker in excess of 150gt, and the owner of any other type of vessel in excess of 400gt must produce , in order to enter Taiwanese waters, evidence of pollution cover which is sufficient to meet the potential pollution liability of that vessl under the Act. In addition, it appears that any certificate of entry or other evidence of insurance must permit claimants to make claims directly against the insurer.

The International Group of P&I Clubs has been corresponding with the Environmental Protection Administration in Taiwan and has pointed out that the International Group is not prepared to issue insurance certificates providing for rights of direct action by claimants except in the limited context of well recognised international conventions such as the 1992 Civil Liability Convention (CLC). We understand that although Taiwan would like to be a party to CLC , its international legal status prevents it from doing so for the time being.

Discussions with the Taiwanese government are continuing and a circular to members will be issued as and when the situation is clearer. In the meantime , members intending to trade to Taiwan should avoid any contractual undertaking ( for example when negotiating charter parties) to comply with Taiwanese insurance and certfication requirements until such time as the present difficulty has been resolved.

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