Title
Mandatory Oil Pollution Liability Coverage Rules
Law
Marina Memorandum Circular No. 184
Decision Date
Feb 21, 2003
MARINA Memorandum Circular No. 184 establishes revised rules for mandatory insurance coverage against civil liability for oil pollution damage for Philippine-registered tankers and barges, detailing specific coverage limits, acceptable financial securities, and penalties for non-compliance.
A

Limits of Liability

  • Requires mandatory insurance or financial security for pollution damage liability under CLC 92.
  • For tankers/barges > 2,000 tons:
    • 3 million SDR for vessels up to 5,000 gross tons (GT).
    • Additional 420 SDR per GT for tonnage exceeding 5,000 GT.
  • For tankers/barges ≤ 2,000 tons:
    • Minimum cover varies by GT, ranging from 1 million SDR for vessels ≤ 250 GT to 2.5 million SDR for vessels between 750 and 1000 GT.

Acceptable Types of Financial Security

  • Insurance cover is acceptable.
  • Other forms of financial security include:
    • Bank guarantees.
    • Certificates from international compensation funds.
    • Other similar securities recognized by the authority.

Issuance of Certificates

  • MARINA issues CLC Certificates upon submission of proof of insurance or financial security.
  • Separate certificates for tankers/barges carrying more than and less than or equal to 2,000 tons.
  • Interpretation of the Circular must align with the International Convention on Civil Liability for Oil Pollution Damage, 1992.

Penalties and Sanctions

  • Non-possession of valid CLC certificate or equivalent subject to escalating fines and suspensions:
    • For vessels > 2,000 tons:
      • First violation: P75,000 fine plus suspension.
      • Second violation: P150,000 fine plus suspension.
      • Third violation: P300,000 fine plus cancellation of certificate.
    • For vessels ≤ 2,000 tons:
      • First violation: P30,000 fine plus suspension.
      • Second violation: P75,000 fine plus suspension.
      • Third violation: P150,000 fine plus cancellation of certificate.
  • Submission of false or fraudulent documents leads to a P100,000 penalty.

Fees

  • Processing fee of P1,200 for certificate issuance.

Repealing Clause

  • Any inconsistent provisions from prior MARINA circulars and regulations are repealed or modified.

Effectivity

  • The Circular takes effect immediately upon publication in a Philippine newspaper of general circulation.

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