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MARINA reinstates insurance requirement to cover liabilities from maritime accidents

MARINA reinstates insurance requirement to cover liabilities from maritime accidents
Roumina Pablo 27 July 2025 https://portcalls.com/marina-reinstates-insurance-requirement-to-cover-l...

The Maritime Industry Authority (MARINA) has reinstated the requirement for insurance covering liabilities arising out of any maritime-related accident. This is after the agency lifted the suspension of a 2010 order mandating such an insurance.

There will be a one-year transition period before full reimplementation of the policy under MARINA Circular (MC) No. 2009-01, according to MARINA Advisory (MA) No. 2025-22.

Consultative meetings with shipowners/operators and stakeholders will take place during the transition period.

The lifting of the suspension of MC No. 2009-01, which contains rules governing the mandatory marine insurance to cover legal liabilities arising out of any maritime related accidents, is “in the best interest of the service” and in view of MARINA Board’s resolution last April, MA 2025-22 noted.

MC 2009-01 was suspended in 2010 when then Department of Transportation and Communications (now Department of Transportation)–MARINA’s mother department–issued a memorandum on February 26, 2010 ordering the cease and desist in the implementation of various MARINA MCs, including the protection and indemnity (P&I) policy.

MC 2009-01 aims to ensure domestic shipowners/operators are able to meet their financial responsibility for legal liabilities arising out of any maritime related accidents. It also aims to ensure adequate marine insurance coverage against legal liabilities and expenses are secured to answer for claims for damage or compensation to risks not covered under existing regulations.

The MC applies to all persons, corporations, partnerships, cooperatives and entities operating any type of ships, 20 gross tonnage (GT) and above, including wooden hulled ships 35 GT and above, for hire or compensation in the domestic trade, and tankers which require coverage as stipulated in MC 184 (revised rules governing mandatory cover against civil liability for oil pollution damage).

Not covered by the policy are government-owned ships not engaged in commerce, non-motorized wooden hulled ships, and yachts and pleasure crafts.

Under the MC, only ships with P&I coverage will be allowed to operate in the domestic trade. P&I is defined in the MC as a form of marine insurance to cover a shipowner’s and/or operator’s liability to others and generally excludes damage to the insured’s own property. The P&I should be secured from a P&I association.

All port state control should also ensure that foreign-flagged ships and Philippine-flagged ships operating in overseas trade, before entering Philippine territorial waters, are covered by adequate marine insurance as required under MC 2009-01.

Shipowners who are not able to secure the adequate or the full marine insurance will be obliged to post a cash bond equivalent to the liabilities stated herein to be deemed compliant with MC 2009-01. Sanctions and penalties will also be imposed on violations to the MC.