Merchant Shipping (Oil Pollution) Act 1994 · Updated to 1 Jun 2015 · Part II · Civil Liability for Oil and Bunker Oil Pollution
13. Rights of third parties against insurers
Official textFrom Laws of Malaysia Online, unchanged
Where it is alleged that the owner of a ship has incurred a liability under section 3 or 3A while there was in force a contract of insurance or other financial security to which such a certificate as is mentioned in section 11 or 11A, respectively, relates, proceedings to enforce a claim in respect of the liability may be instituted against the person who provided the insurance or other financial security
person
“person” means any individual or partnership or any public or private body, whether corporate or not, including a State or any of its constituent subdivisions;
(referred to in this section as “the insurer”).
In any proceedings instituted against the insurer by virtue of this section, the insurer may invoke the defences (other than bankruptcy or winding up of the owner) which the owner himself would have been entitled to invoke, and it shall be a defence to prove that the pollution damage resulted from the wilful misconduct of the owner himself.
pollution damage
“pollution damage” means— (a) loss or damage caused outside a ship by contamination resulting from the discharge or escape of oil or bunker oil from the ship, wherever such discharge or escape may occur, provided that compensation for impairment of the environment other than loss of profit from such impairment shall be limited to costs and reasonable measures of reinstatement actually undertaken or to be undertaken; and (b) the costs of preventive measures and further loss or damage caused by preventive measures;
The insurer may limit his liability in respect of claims made against him by virtue of this section in like manner and to the same extent as the owner of a ship may limit his liability under subsection 6(2) or 6A(2), as the case may be, even if the owner, in accordance with subsection 6(3) or 6A(3), as the case may be, is not entitled to limit his liability.
Where the owner of a ship and the insurer each applies to the
Court for the limitation of his liability any payment or any deposit of a bank guarantee or security into the Court in pursuance of either
Court
“Court” means the High Court in Malaya and the High Court in Sabah and Sarawak, as the case may be;
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application shall be treated as paid or deposited also in pursuance of the other.
Terms defined in s 2
Court
Defined · s 2“Court” means the High Court in Malaya and the High Court in Sabah and Sarawak, as the case may be;
person
Defined · s 2“person” means any individual or partnership or any public or private body, whether corporate or not, including a State or any of its constituent subdivisions;
pollution damage
Defined · s 2“pollution damage” means— (a) loss or damage caused outside a ship by contamination resulting from the discharge or escape of oil or bunker oil from the ship, wherever such discharge or escape may occur, provided that compensation for impairment of the environment other than loss of profit from such impairment shall be limited to costs and reasonable measures of reinstatement actually undertaken or to be undertaken; and (b) the costs of preventive measures and further loss or damage caused by preventive measures;
Part III
The International Oil Pollution Compensation Fund
Part IV
Jurisdiction and Effect of Judgements
Part V
Enforcement
Part VI