Section 172: Compulsory insurance or other financial security for maritime claims subject to limitation.
The Merchant Shipping Act, 2025Central Act · Act 24 of 2025
(1) Every registered owner of an Indian vessel and of any vessel other than an Indian vessel entering or departing a port in India or operating in the coastal waters shall maintain compulsory insurance or such other financial security from an insurer or organisation as may be prescribed, in respect of such vessel.
(2) The insurance shall cover maritime claims subject to limitation specified under section 162.
(3) The amount of insurance for each and every vessel per incident shall be at least equal to the relevant maximum amount for the limitation of liability provided under section 165 and for passenger claims the relevant maximum amount for the limitation of liability under section 166.
(4) Any vessel departing a port in India in contravention of this section shall be liable to be detained by such authority as may be prescribed.