The Merchant Shipping (Shipowners' Insurance for Maritime Claims) Law 14(I) of 2012
The Merchant Shipping (Shipowners' Insurance for Maritime Claims) Law 14(I) of 2012, which transposes the provisions of Directive 2009/20/EC into national law, has entered into force following enactment by the Cyprus House of Representatives and publication in the Official Gazette. An unofficial translation of the law is available on the website of the Department of Merchant Shipping.
The law requires owners of ships of 300 gross tonnes or over flying the Cyprus flag or, irrespective of flag, calling at Cyprus ports or operating within the territorial sea of the Republic of Cyprus to have insurance in place in respect of maritime claims subject to limitation under the 1996 Convention on Limitation of Liability for Maritime Claims and as required by Directive 2009/20/EC. Acceptable cover includes protection and indemnity insurance of the type currently provided by members of the International Group of P&I Clubs, other effective forms of insurance (including proved self-insurance) and financial security offering similar conditions of cover. Documentary evidence of cover must be kept on board the ship.
The law empowers the shipping authorities to monitor compliance and provides for an administrative fine of up to €8,500 for failure to comply with its requirements. More serious breaches of the law are punishable by imprisonment for up to two years, a fine of up to €10,000 or both.
If you require any further information please contact Costas Stamatiou or your usual contact at Andreas Neocleous & Co LLC.