What are the requirements under the proposed compulsory insurance regulations (Marine Liability Act)?
Operators of vessels 15 gross tons and less which are used by passengers for travel within Canada will be required to maintain liability insurance of $1 million if they carry 12 passengers or less, and $2 million for vessels if carrying more than 12 passengers. Operators of vessels greater than 15 gross tons will be required to maintain coverage of $350,000 multiplied by the number of passengers the vessels is authorized to carry. The compulsory insurance requirements will not apply to non-motorized and/or inflatable-hulled vessels. Operators of these vessels should keep in mind that although they will not be required to maintain insurance, they are still part of the Act, and as such, the other provisions of the Act, including liability provision, still apply. In case of fleet insurance, the vessel with the greatest passenger capacity will be used to determine the required amount of insurance.
