Royal Decree 1616/2011 of 14 November 2011, regarding the insurance of shipowners for claims connected to maritime law was published on 15 November 2011 in the Spanish Official Bulletin. The Royal Decree implements EU Directive 2009/20/CE of 23 April 2009 and will come into force on 31 December 2011.
The Decree impacts on any non-military vessel with tonnage of 300 GT or over calling at any Spanish port or entering Spanish territorial waters. It additionally applies to any Spanish-flagged vessel of 300 GT and above wherever it operates.
From 31 December 2011 such vessels, when calling at a Spanish port, will need to have on board and exhibit to the Harbour Master upon arrival and clearance an original or authenticated copy of a Certificate of Entry. A copy of the Certificate of Entry marked “this is an authenticated copy of the original Certificate of Entry”, signed and stamped by the Club, would appear to be sufficient to meet requirements. The validity of electronic documents remains under discussion within the Spanish Maritime Authorities.
The Certificate of Entry will have to contain the following information:
a) Name of the vessel, OMI number and port of registry.
b) Name and place of business of the ship-owner.
c) Class and duration of the insurance (i.e. period of cover) or financial security.
d) Name and place of business of the insurance company/P&I Club and the location where the insurance was subscribed.
The insurance must cover claims in the same terms and for an amount per incident equal to the maximum limit of liability as set out in 1976 LLMC Convention amended by 1996 Protocol. The insurance shall be of the type offered by the P&I Clubs of the International Group. In cases where the insurance is contracted with a company other than a P&I Club, the insurance must still meet the requirements stated in the Royal Decree and the Spanish Insurance Act.
The consequences of not having the Certificate of Entry (or copy) on board are regulated by the Spanish Port Act and fines of up to € 180,000 can be imposed if the Authorities consider an owner to be in breach of the obligations. The General Directorate of the Merchant Navy will also have the power to expel from Spanish territorial waters vessels which do not comply with the requirements.
From a practical point of view, the new regulation seeks to ensure owners have in place an appropriate insurance cover evidenced by the pertinent documents held on board when calling Spanish ports or territorial waters.
The relevant Harbour Master and Maritime Authorities will be the parties monitoring compliance and breach of the regulation is likely to result in significant fines and detention to vessels.
Article by Juan Zaplana
