MARINA Reinstates Maritime Insurance Requirement for Shipowners to Cover Maritime Accidents

MARINA’s New Insurance Mandate

The Maritime Industry Authority (MARINA) has taken significant steps by reinstating the requirement for insurance that covers liabilities arising from maritime accidents. This change comes after the agency lifted the suspension on a 2010 directive that mandated such insurance and will usher in a one-year transition period aimed at a smooth policy reimplementation.

Transition Period and Consultations

In a bid to ensure all stakeholders are informed and prepared, MARINA plans to hold consultative meetings with shipowners and operators throughout this transition. This engagement serves as an opportunity to address concerns and clarify the implications of the newly reinstated marine insurance requirements.

The Importance of Marine Insurance

The reinstatement of these insurance requirements is in line with MARINA’s commitment to safeguard the industry and protect the interests of shipowners. The agency’s Advisory (MA) No. 2025-22 notes that lifting the suspension is “in the best interest of the service,” following resolutions made by the MARINA Board earlier in the year. It ensures that domestic shipowners/operators are financially responsible for liabilities associated with maritime accidents, ultimately aiming for better safety standards in the logistics of maritime transport.

Understanding the Insurance Requirements

The framework established by MARINA Circular (MC) No. 2009-01, which was previously suspended, specifies that all maritime entities operating vessels 20 gross tonnage (GT) and above must secure adequate insurance coverage. This insurance must cater to various liabilities and expenses related to maritime accidents, aiming to safeguard against claims for damage or compensation that current regulations might not cover.

Who Needs to Comply?

• All persons and entities operating ships with a gross tonnage of 20 GT and above, including wooden-hulled vessels of 35 GT and beyond.
• Tankers requiring coverage as detailed in MC 184, which governs civil liability for oil pollution damage.
• Corporate bodies, partnerships, and cooperatives involved in the domestic trade.

However, government-owned vessels not engaged in commerce, non-motorized wooden-hulled ships, yachts, and pleasure crafts are exempt from this policy.

Enforcement of the Policy

As per the new guidelines, only vessels holding valid protection and indemnity (P&I) insurance will be permitted to operate within domestic trade. P&I insurance is designed to cover shipowners’ and operators’ liabilities to third parties while generally excluding damage to their own property. Shipowners are expected to procure this insurance from P&I associations.

Implications for Port State Control

MARINA’s mandates will extend to foreign-flagged ships as well. It stipulates that any foreign-flagged and Philippine-flagged vessels conducting overseas trade must hold the necessary marine insurance before entering Philippine territorial waters. This measure is intended to create a level playing field and enhance safety and accountability in maritime transport.

Consequences of Non-Compliance

Shipowners who fail to secure adequate marine insurance will be required to post a cash bond equivalent to the stated liabilities to ensure compliance with MC 2009-01. Additionally, there are sanctions and penalties outlined for any violations of the circular, reinforcing the seriousness of adhering to these regulations.

The Future of Maritime Logistics

The reinstatement of mandatory marine insurance by MARINA has a ripple effect on the logistics and maritime sectors. It reinforces the need for safer logistics solutions and enhances accountability among stakeholders in marine transportation. As these changes unfold, they will likely shape shipping practices and influence logistic strategies across the board.

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The significance of MARINA’s reinstated requirements cannot be overstated. They signify a commitment to improved safety standards among shipowners and create a more robust framework for liability management. It’s a great leap towards ensuring accountability and maintaining safety in maritime operations, which ultimately enriches the logistics landscape. So, when planning your next shipment or relocation, consider the advantages of using GetTransport.com for your transportation needs. Book your cargo transportation with GetTransport.com today!