We receive and willingly submit the following advice from BLK partners a law firm based in UAE which through lawyer Tarek Saad actively contributed to the drafting and amendment of the New UAE Maritime Law 43 of 2023 in collaboration with the Federal Transportation Authority.
This is an important issue, regulating a mandatory Liability Insurance for all type of transport ships including Passengers ships and recognizing a crucial role to P&I Clubs and P&I Insurers in offering financial protection and indemnification to shipowners and their vessels calling or transiting UAE waters.
Navigating the New UAE Maritime Law 43 of 2023: Guidance for Protection and Indemnity Clubs
In the dynamic landscape of the maritime and shipping industry, the recently enacted UAE Maritime Law No. 43 of 2023 stands as a significant regulatory update. This law specifically addresses the functions and responsibilities of Protection and Indemnity (P&I) clubs, recognizing their crucial role in offering financial protection and indemnification to shipowners.
The new law aims to fortify the position and functions of P&I clubs in key aspects outlined below:
Article57: Provisional Seizure and Guarantee for Maritime Debts
1. Provisional seizure serves to restrict a ship from traveling.
2. The court holds the authority to lift the seizure upon presentation of sufficient bail or guarantee.
3. Guarantee letters issued by P&I clubs or approved financial institutions are acknowledged as satisfactory, and the executive regulations determine the provisions for the acceptance of the guarantee letters.
4. Requests for lifting seizure or providing bail/guarantee are not construed as an admission of liability.
Article333: Ensuring Compliance with Mandatory Liability Insurance
1. Ships within state ports or waters are mandated to carry insurance documents covering liability for maritime risks.
2. Insurance covering the wages of captains and sailors is considered part of liability insurance.
3. Ships flying the state's flag must obtain insurance covering liability for all their voyages.
4. The ministry defines covered risks and assumes supervisory authority.
Article334: Mandatory Liability Insurance for Passenger Transport Ships
Operators of passenger transport ships are obligated to maintain liability insurance, with specific guidelines established by the ministry.
Article335: Facilitating Cooperative Insurance Entities
1. Entities such as P&I clubs are permitted to establish branches in the country andenter into agreements with local insurance entities.
2. The minister specifies accredited entities authorized to issue letters guaranteeing the payment of maritime debts.
This circular has been developed by the Maritime, Shipping, and Logistics departmentat BLK Partners, headed by Tarek Saad (Partner). Tarek spearheaded the maritime law project and actively contributed to the drafting and amendment of the lawin collaboration with the Federal Transportation Authority in the UAE.
Should you have any queries or require further clarification, please do not hesitate to reach out to our team at:
Tarek.firstname.lastname@example.org ; Elias.email@example.com.
This circular can also be accessed at www.blkpartners.com
Note: This circular provides a broad perspective on the marine market and should not beconstrued as an advisory. The information is derived from sources deemed reliable at the time of publication, and we cannot be held responsible for any omissions in the circular. The above circular is a summary of the New UAE Maritime Law 43 of 2023 and does not include the exact translation of the article's context.