Guidance note about the insurance requirements issued by the Cayman Islands

The Maritime Authority of the Cayman Islands (MACI) has issued a guidance note about the insurance requirements for Cayman Islands vessels.

This updated guidance note issued on 10 May 2023 replaces the previous one (01/2012) and applies to owners, managers, charterers, crewing agencies, and masters of Cayman Islands ships, including private and commercial yachts.

The main purpose of this notice is to provide essential information on ship insurance requirements.

It covers:

• Highlighting the relevant Cayman Islands laws regarding ship insurance maintenance.
• Explaining the EU requirements in this regard.
• Advising on the necessary level of insurance coverage.
• Providing guidance on demonstrating compliance.
• Warning about the potential penalties for non-compliance within the EU.

Under the Cayman Islands Merchant Shipping Act, all Cayman Islands vessels, regardless of their location, and any vessels in the Cayman Islands waters must have third-party insurance. Failure to comply is an offense.

Additionally, according to an EU directive, all seagoing vessels with a gross tonnage of 300 or more, irrespective of type, size, or flag, must carry insurance covering liability from maritime claims.

This coverage must meet the minimum liability limits specified in the 1996 Protocol to the Convention on Limitation of Liability for Maritime Claims (LLMC 96). Compliance is necessary for accessing EU ports.

For more information, please see the document below (available only to subscribers):

RELEVANT DOCUMENTS:

Insurance Requirements for Cayman Islands Vessels