Section 188
Compulsory insurance or other financial security.
The Merchant Shipping Act, 2025
About this Act
An Act to consolidate and amend the law relating to merchant shipping to ensure compliance with India's obligation under the maritime treaties and international instruments to which India is a party and also to ensure the development of Indian shipping and efficient maintenance of Indian mercantile marine in a manner best suited to serve the national interest and for matters connected therewith or incidental thereto.
(1) The owner of every ship carrying more than two thousand tons of oil in bulk as cargo shall in respect of such ship maintain an insurance or other financial security to cover his liability for pollution damage under this Chapter for the amount specified under the provisions of the Civil Liability Convention:
Provided that the Central Government may require the owner of a ship carrying such tons of oil in bulk, to maintain insurance or other financial security to cover his liability for pollution damage up to such limits, as may be prescribed.
(2) In respect of every Indian vessel which maintains insurance or other financial security under sub-section (1), there shall be granted by the Central Government a certificate in such form and giving such particulars, subject to payment of such fee, as may be prescribed.
(3) The Central Government may, on an application by the owner or agent of any foreign ship, grant a certificate under sub-section (2) in respect of such foreign ship on production of satisfactory evidence relating to maintenance of insurance or other financial security in accordance with the provisions of the Civil Liability Convention.
Provided that the Central Government may require the owner of a ship carrying such tons of oil in bulk, to maintain insurance or other financial security to cover his liability for pollution damage up to such limits, as may be prescribed.
(2) In respect of every Indian vessel which maintains insurance or other financial security under sub-section (1), there shall be granted by the Central Government a certificate in such form and giving such particulars, subject to payment of such fee, as may be prescribed.
(3) The Central Government may, on an application by the owner or agent of any foreign ship, grant a certificate under sub-section (2) in respect of such foreign ship on production of satisfactory evidence relating to maintenance of insurance or other financial security in accordance with the provisions of the Civil Liability Convention.