Section 12

Subject to subsection (2), if the Director of Marine is satisfied, on an application for such certificate as is mentioned in section 11A in respect of a ship registered in Malaysia or any country which is not a Bunkers Convention country, that there will be in force in respect of the ship, throughout the period for which the certificate is to be issued, a valid contract of insurance or other financial security satisfying the requirements of Article 7 of the Bunkers Convention, the Director of Marine shall issue such certificate to the registered owner.

Merchant Shipping (Liability and 23

Compensation for Oil and Bunker Oil Pollution)

If the Director of Marine is of the opinion that there is a doubt whether the person providing the insurance or other financial security will be able to meet his obligations, or whether the insurance or other financial security will cover the owner’s liability under section 3 or 3A in all circumstances, he may refuse to issue the certificate.

The Director of Marine shall maintain a record of any certificate issued by him in respect of a ship registered in

Malaysia and this shall be available for public inspection.

Rights of third parties against insurers