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Section 205: Direct action against insurer or other person providing financial security.

The Merchant Shipping Act, 2025Central Act · Act 24 of 2025

(1) The insurer or other person providing financial security for the ship owner's liability for pollution damage may also be liable along with the ship owner for any claim for compensation for such damage.

(2) The insurer or other person providing financial security may, if the ship owner is not entitled to limit his liability in accordance with the provisions of section 200, avail himself such limits of liability as may be prescribed.

(3) Any claim for compensation for pollution damage may be brought directly against the insurer or other person providing financial security for the registered ship owner's liability for pollution damage and in such case, the insurer or such person may invoke defences (other than bankruptcy or winding up of the company) which the ship owner would have been entitled to invoke, including limitation of liability under section 200:

Provided that the insurer or such person may invoke the defence that the pollution damage resulted from the wilful misconduct of the ship owner but shall not invoke any other defence which such insurer or person might have been entitled to invoke in proceedings brought by the ship owner against such insurer or person:

Provided further that the insurer or such person may make the ship owner a party to such proceedings.

Where this provision sits

ActThe Merchant Shipping Act, 2025
Section205
Marginal noteDirect action against insurer or other person providing financial security.
JurisdictionCentral
StatusIn force as published by the source

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