This Guidance Note replaces Guidance Note 01/2012 which is now withdrawn.
To: OWNERS, MANAGERS, CHARTERERS, CREWING AGENCIES AND MASTERS OF CAYMAN ISLANDS SHIPS (INCLUDING PRIVATE AND COMMERCIAL YACHTS).
1. BACKGROUND
1.1 The purpose of this notice is to –
1.1.1 draw attention to Cayman Islands Law regarding maintenance of insurance on ships;
1.1.2 provide information on EU requirements;
1.1.3 advise what level of insurance will be required;
1.1.4 advise how to demonstrate this; and
1.1.5 warn of the potential penalties for not carrying such insurance within the EU.
1.2 In accordance with the Cayman Islands Merchant Shipping Act, all Cayman Islands vessels wherever they may be and all other vessels whilst in Cayman Islands waters, regardless of size, type or mode of operation, require third party insurance to cover their liabilities under the Act and it is an offence not to have such insurance in place (See also paragraph 2.1).
1.3 In accordance with a European Union (EU) directive all seagoing vessels regardless of type, size, mode of operation or flag, of 300 gross tonnage (gt) and above, must carry insurance cover against liability arising from maritime claims which as a minimum, meets the limits of liability specified in the 1996 Protocol to the Convention on Limitation of Liability for Maritime Claims, 1976, referred to hereafter as LLMC 96, in order for the vessel to enter any EU port (see also paragraph 3.4 for information on the claims which may be limited under LLMC 96).