Section 8
New section 381a
of Merchant Shipping (Amendment and Extension) Act 2011
The Ordinance is amended by inserting after section 381 the following section:
“Compulsory insurance for removal of wreck.
Quoted provision
Section 381a
The owner of any ship of 300 tons and above that enters or leaves a port in Malaysia or any part of Malaysian waters shall maintain in respect of that ship a contract of insurance or other financial security in an amount equal to the amount calculated in accordance with Article 6, paragraph (1)(b) of Part I of the Sixteenth Schedule to cover the liability that may be incurred under section 381.
(2)
This section shall not apply to—
(a)
ships of war and troopships; and
(b)
any ship for the time being used by the government of any State for purposes other than commercial purposes.
(3)
If a ship enters or leaves, or attempts to enter or leave, a port in Malaysia or any part of Malaysian waters in contravention of subsection (1), the owner of the ship shall be guilty of an offence and shall be liable on conviction to a fine of not less than two hundred thousand ringgit and not more than five hundred thousand ringgit.
Merchant Shipping (Amendment and Extension)
(4)
If a ship attempts to leave a port in Malaysia or any part of Malaysian waters in contravention of this section, the ship may be detained.
(5)
Any contract of insurance or other financial security required by this section to be in force in respect of a ship shall, be carried in the ship, and shall on demand be produced by the master to the Director of Marine or any person authorized in writing by the
Director of Marine.
(6)
If a ship fails to carry, or the master of the ship fails to produce, a contract of insurance or other financial security as required by subsection (5), the master of the ship shall be guilty of an offence and shall be liable on conviction to a fine of not less than twenty thousand ringgit and not more than one hundred thousand ringgit.”.