Hong Kong: Compulsory third party risk insurance of local vessels
Increases in minimum liability cover for compulsory third party risk insurance of local vessels to come into effect from 1 September 2016.
The Merchant Shipping (Local Vessels) (Amount of Insurance Cover) (Amendment) Notice 2016, which increases the minimum amount of liability cover required for the compulsory third party risk insurance of local vessels, will come into effect on 1 September 2016.
Since 2 July 2007, compulsory insurance requirements were extended to cover all certified vessels except any laid-up vessels with necessary permission or non-mechanically propelled vessels having overall length of not more than four metres.
From 1 September 2016, the required covering of the policy of insurance will increase as follows:
- HKD 10 million (increased from HKD 5 million) for a vessel permitted to carry more than 12 passengers, other than a Class I primitive vessel and a Class IV vessel not let for hire or reward;
- HKD 5 million (increased from HKD 1 million) for a local vessel permitted to carry 12 or less than 12 passengers, a Class I primitive vessel or a Class IV vessel not let for hire or reward.
For local vessels with policies of insurance in force immediately before 1 September 2016 the current minimum amounts will continue to be applicable, until:
- the policy expiry date;
- the expiry of one year beginning on 1 September 2016; or
- the terms or conditions of the policy are altered in any way that would cause the policy to cease to be in compliance with the current statutory requirements, whichever is the earliest.
For further information please contact:
Lloyd's International Trading Advice
Primary point of contact for advice and information
on Lloyd's trading status worldwide.