MC 2009 01

MARINA CIRCULAR NO.
01
Series of 2009
TO : ALL CONCERNED DOMESTIC SHIPOWNERS/OPERATORS

OF SHIPS PLYING DOMESTIC TRADE AND PORT STATE
REQUIREMENTS AS PER SECTION VIII HEREIN
SUBJECT : RULES GOVERNING THE MANDATORY MARINE

INSURANCE TO COVER LEGAL LIABILITIES ARISING OUT
OF ANY MARITIME RELATED ACCIDENTS
Pursuant to Presidential Decree No. 474 and Executive Order No. 125 as
amended, and Republic Act No. 9295 and its Implementing Rules and
Regulations (Sections 1 & 2, Rule IX) the following rules are hereby adopted:
I. OBJECTIVES:
1. To ensure that domestic shipowners/operators and those

shipowners/operators referred to in section VIII herein will be able to
meet their financial responsibility for any legal liability arising out of
any maritime related accidents;
2. To ensure that adequate marine insurance coverage against legal

liabilities and expenses are secured to answer for claims for damage
or compensation to risks not covered under existing regulations.
II. COVERAGE:
This Circular shall apply to all persons, corporations, partnerships,

cooperatives and entities operating any type of ships, 20 GT and above,
including wooden hulled ships 35 GT and above, for hire or compensation
in the domestic trade, and tankers which require coverage as stipulated in
MC 184.
The following ships shall not be covered:
1. Government owned ships not engaged in commerce

2. Non-motorized wooden hulled ships
3. Yachts and pleasure crafts
III. DEFINITION OF TERMS:
1. Protection and Indemnity (P&I) – refers to a form of marine

insurance to cover a shipowner’s and/or operator’s liability to others
and generally excludes damage to the insured’s own property.
2. P&I Mutual Club – refers to a group of shipowners and bareboat

charterers grouped together by becoming members of a Protection
and Indemnity Mutual Association to cover any liabilities arising out of
the management or navigation of their vessels.
3. P & I Associations’ Premiums (also referred to as “Calls”) –

refers to the amount required as contribution to the mutual fund
computed on a rate per GT of the entered ship.
4. Advance Call – refers to the amount required at the commencement

of the policy year of the P & I Club to be collected from its members.
Often, the advance call is only an installment premium, and at the
same time the Club publishes its estimate of the additional call which
it anticipates will be necessary to balance the accounts for that year
with the actual amount being determined some six months after the
end of the policy year.
5. Supplementary Call – refers to additional call, where the claims in

any one year exceed the advance call. An owner will be offered cover
on a mutual basis, the concept of mutuality being fundamental to the
operation of P & I Clubs. This means that in any one year, the
premium collected from the Members should be identical to total
expenses and claims arising out of incidents during the same period.
In this way, the Club makes neither a profit nor loss. To achieve this
result it is possible that members may be required to pay a
supplementary premium during the course of a policy year in the
event that claims exceed the premium initially collected.
6. Renewal Date – refers to Noon of February 20th each year, as the

major proportion of all P & I Club entries are renewable at the same
time - Noon, on 20th February, and any new entry (vessels) attaching
mid-year has an initial period of insurance up to the next 20th
February and thereafter is entered for 12 months.
7. Adequate Insurance – is an insurance cover which complies with the

minimum requirements of this Circular.
8. Full Insurance – is an insurance which covers all the risks set out in
Section V.
9. Philippine Domestic Insurance Company Market – refers to local

insurance companies registered in the Philippines, which have been
founded with local Philippine capital and comply with local Philippine
regulations. The Philippine Domestic Insurance Market excludes local
branches, affiliates, offices or agencies of or any other type of
connection with an overseas parent company.
10. Maritime related accidents – are ship related incidents such as, but
not limited to collision, grounding, sinking, capsizing & any other
extraordinary incidents involving ships.
11. Members of the International Group of P&I Clubs – internationally
recognized P&I Clubs as listed in the appendices hereunder.
12. The National Mutual Protection and Indemnity Association of the
Philippines Inc. – the local Philippine P&I Mutual Club specifically
incorporated by means of an association of Philippine shipowners
plying domestic trade with the purpose of providing the adequate
insurance to those shipowners, who are unable to secure full cover
with Members of the International Group of P&I Clubs and from the
identified fixed premium underwriters in Appendix 4.
IV. GENERAL PROVISIONS:
1. Only ships with P & I coverage (as defined herein) shall be allowed to
operate in the domestic trade.
2. The P & I coverage may be secured from a P & I Association (as

defined herein)
3. The adequate marine insurance cover shall be secured from the

National Mutual Protection and Indemnity Association of the
Philippines Inc. and full cover as set out in Section lll Paragraph 8
shall be secured from Protection and Indemnity associations which
are Members of the International Group of P&I Clubs or the National
Mutual Protection and Indemnity Association of the Philippines Inc. in
Appendix Number 1 or from the identified fixed premium underwriters
or the Philippine Domestic Insurance Company Market in Appendix 4.
4. The tankers which require cover as stipulated in MC184 shall secure

P & I cover from the list of accredited insurers in Appendix 5.
5. Current Members entered with the International Group of P&I Clubs in

Appendix 1 and those covered by the identified fixed premium
underwriters in Appendix 4. – shall have the right to maintain their
existing cover, but shall not have the right to reduce their existing
cover to the adequate insurance as defined herein. Should their
existing cover be less than the mandatory minimum adequate
insurance, they shall be obliged to change their cover to the adequate
insurance as defined herein.
6. Shipowners who are not able to secure the adequate or the full
marine insurance shall be obliged to post a cash bond equivalent to
the liabilities stated herein to be deemed compliant with this circular.
7. The ships covered by International Group of P&I Clubs are deemed in

compliance with this Circular provided the liabilities arising from wreck
removal and oil pollution are included.
V. SPECIFIC PROVISIONS:
1. The adequate marine insurance shall cover the following:

a. Liabilities arising from wreck removal
b .Liabilities arising from pollution
2. Non-coverage of any of the above mentioned liabilities shall be

construed as non-compliance of this Circular and shall subject the
concerned persons, corporations, partnerships, corporations and
entities to appropriate penalties as provided herein.
3. The following shall be added to the adequate marine insurance in the

second phase of the program:
c. Loss of life, illness and personal injury(passenger/third

parties/ Seamen)
d. Liabilities arising from collisions
e. Liabilities arising from damage to fixed and floating
objects/facilities
f. Liabilities to cargo (loss, shortage and damage)
4. The non-motorized ships, however, shall be covered only from

liabilities arising from wreck removal except those that are utilized to
carry petroleum products/petroleum by products or other cargoes,
which may cause pollution.
5. The concerned persons, corporations, partnerships, cooperatives and

entities shall submit to the MARINA copy of the mandatory insurance
cover within five (5) days from date of renewal.
6. Shipowners who will comply with this circular by 20 February 2009,

shall be given a one-time discount equivalent to five percent (5%) of
the tonnage fee due for the year computed using the rates for first
quarter payments.
7. The MARINA shall publish through, an advisory a list of P&I compliant

companies/vessels as of 20 February 2009, and another list after the
(90)-day grace period.
VI. LIMITS OF LIABILITY:
COVERAGE GROSS TONNAGE MINIMUM LIMIT OF

LIABILITY
1. Liabilities arising 20/35(WHS) and *US$1.5M per loss
from Wreck above
Removal
2. Liabilities arising 20/35(WHS) and *US$1.5M per loss
from Oil above
Pollution or other
substances
In the event of a simultaneous removal of wreck and a pollution
incident, the National Mutual Protection and Indemnity Association of
the Philippines Inc. will cover a combined single limit of any one event
of US$3,000,000
VII. SANCTIONS AND PENALTIES:
VIOLATION SANCTION/PENALTY
1. Operating without adequate First Company Offense –
marine insurance suspension until compliance
+P1,000 per GT per vessel
involved in the accident
2nd Company Offense -
suspension until compliance
involved in the accident
3rd and succeeding Company
Offense - suspension until
compliance +P1,500 per GT per
vessel involved in the accident
2. Submission of fraudulent First Company Offense –
documents suspension until compliance
involved in the accident, without
prejudice to filing of criminal
charges in a proper Court
2nd Company Offense –
suspension until compliance
involved in the accident, without
prejudice to filing of criminal
charges in a proper Court
3rd and succeeding Company
Offense - suspension until
compliance +P2,000 per GT per
vessel involved in the accident,
without prejudice to filing of
criminal charges in a proper Court
VIII. PORT STATE:
All Port State Control shall ensure that foreign-flagged ships and
Philippine-flagged ships operating in overseas trade, before entering in
Philippine territorial waters, are covered by adequate marine insurance as
required under this Circular. A list of accredited insurers for Philippine-
flagged ships operating in overseas trade is shown in Appendices 2 & 4,
for foreign-flagged non-tanker ships in Appendices 3 & 4 and for foreign-
flagged tanker ships carrying persistent oil in Appendix 5.
IX. TRANSITORY PROVISION:
Phase 1
Liabilities arising from wreck removal

Liabilities arising from oil pollution
All ships engaged in domestic trade covered under this Circular are
hereby given until noon 20th February 2009 to secure the required P&I
cover in Phase 1 of the provisions of this Circular. An extension of 90
days to comply with this circular shall be given, upon filing of an Oath of
Undertaking stating that compliance is currently being undertaken by the
shipowner with either the National Mutual Protection and Indemnity
Association of the Philippines Inc. or, in the event of full cover, with the
Protection and Indemnity associations which are Members of the
International Group of P&I Clubs, a list of which can be found in Appendix
1 hereunder. or from the identified fixed premium underwriters or the
Philippine Domestic Insurance Company Market in Appendix 4.
Phase 2
Loss of life, illness and personal injury (Seaman /third parties)

Liabilities arising from collisions
Liabilities arising from damage to fix and floating objects/facilities
All ships engaged in domestic trade covered under this Circular shall be
given until a date to be advised to comply with Phase 2 of the provision of
this Circular. The adequate marine insurance limits shall be advised at
that time.
Phase 3
Loss of life, illness and personal injury (passenger)

Liabilities to cargo (loss, shortage and damage)
All ships engaged in domestic trade covered under this Circular shall be
given until a date to be advised to comply with Phase 3 of the provisions
of this Circular. The adequate marine insurance limits shall be advised at
that time.
X. REPEALING CLAUSE:
Any provision of existing MARINA Circulars, Rules and Regulations

Orders or Decisions which are inconsistent with this Circular are hereby
repealed or modified accordingly.
XI. SEPARABILITY CLAUSE:
Should any provision or part of this Circular be declared by

competent Authority to be invalid or unconstitutional, the remaining
provisions or parts hereof shall remain in full force and effect and shall
continue to be valid and effective.
XII. EFFECTIVITY:
This Circular shall take effect immediately after publication in a

newspaper of national circulation in the Philippines.
Manila, Philippines, 04 February 2009.
BY THE AUTHORITY OF THE MARINA BOARD:
(Sgd.) MARIA ELENA H. BAUTISTA

Administrator
SECRETARY’S CERTIFICATE
This is to certify that the foregoing Memorandum Circular No. 2009-01

was approved by the MARINA Board on 04 February 2009.
VIRGILIO B. CALAG
Corporate Board Secretary
APPENDIX 1
MARITIME INDUSTRY AUTHORITY (MARINA)
The accredited insurers on compulsory insurance requirement for ships in

accordance with this Circular:
1. National Mutual Protection and Indemnity Association of the

Philippines, Inc.
2. The Japan Ship Owners’ Mutual Protection & Indemnity Association
3. Assurance foreign Gard (Gjensidig)
4. The United Kingdom Mutual Steam Ship Assurance Association

(Bermuda) Limited
5. American Steamship Owners Mutual Protection and Indemnity

Association, Inc.
6. Gard P&I (Bermuda) Limited
7. Skuld Mutual Protection and Indemnity Association (Bermuda) Limited
8. The London Steam-Ship Owners' Mutual Insurance Association Limited
9. The North of England Protecting and Indemnity Association Limited
10. The Shipowners' Mutual Protection and Indemnity Association

(Luxembourg)
11. The Standard Steamship Owners' Protection and Indemnity Association

(Asia) Limited

(Bermuda) Limited

(Europe) Limited

(London) Limited
15. The Steamship Mutual Underwriting Association (Bermuda) Limited
16. The Steamship Mutual Underwriting Association Limited
17. The United Kingdom Mutual Steam Ship Assurance Association (Europe)
Limited
18. The West of England Ship Owners' Mutual Insurance Association
(Luxembourg)
19. The Britannia Steam Ship Insurance Association Limited
20. Sveriges Angfartygs Assurans Forening
APPENDIX 2
The accredited insurers on compulsory insurance requirement for non-

tanker ships calling to Philippine Ports in accordance with this referring to VIII.
PORT STATE (Philippine-Flagged ships operating overseas):
1. National Mutual P & I Association of the Philippines
3. Assuranceforeningen Gard (Gjensidig)

(Bermuda) Limited

Association, Inc.
6. Assuranceforeningen Skuld (Gjensidig)

(Luxembourg)

(Asia) Limited

(Bermuda) Limited

(Europe) Limited
(London) Limited
Limited

(Luxembourg)
APPENDIX 3
The designated insurers on compulsory insurance requirement for non-

tanker ships calling to Philippine Ports in accordance with this referring to VIII.
PORT STATE (Foreign-Flagged Vessels):

(Bermuda) Limited

Association, Inc.

(Luxembourg)
(Asia) Limited

(Bermuda) Limited

(Europe) Limited

(London) Limited
Limited

(Luxembourg)
APPENDIX 4
List of Fixed Premium underwriters and other P & I Clubs
1. QBE Insurance Limited
2. Lloyd’s of London
3. Tokio Marine & Nichido Fire Insurance Company, Limited
4. China Shipowners Mutual Assurance Association
5. British Marine Luxembourg S.A.
6. The Korea Shipowner's Mutual Protection and Indemnity Association
7. Navigators Insurance Company
8. The Philippine Domestic Insurance Company Market

APPENDIX 5
The accredited insurers on compulsory insurance requirement for tanker

ships carrying persistent oil in Philippine Territorial Waters:

(Bermuda) Limited

Association, Inc.

(Luxembourg)

(Asia) Limited

(Bermuda) Limited

(Europe) Limited

(London) Limited
Limited
(Luxembourg)

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MARINA CIRCULAR NO.

TO : ALL CONCERNED DOMESTIC SHIPOWNERS/OPERATORS

SUBJECT : RULES GOVERNING THE MANDATORY MARINE

1. To ensure that domestic shipowners/operators and those

2. To ensure that adequate marine insurance coverage against legal

This Circular shall apply to all persons, corporations, partnerships,

The following ships shall not be covered:

1. Government owned ships not engaged in commerce

III. DEFINITION OF TERMS:

1. Protection and Indemnity (P&I) – refers to a form of marine

2. P&I Mutual Club – refers to a group of shipowners and bareboat

3. P & I Associations’ Premiums (also referred to as “Calls”) –

4. Advance Call – refers to the amount required at the commencement

5. Supplementary Call – refers to additional call, where the claims in

6. Renewal Date – refers to Noon of February 20th each year, as the

7. Adequate Insurance – is an insurance cover which complies with the

9. Philippine Domestic Insurance Company Market – refers to local

IV. GENERAL PROVISIONS:

2. The P & I coverage may be secured from a P & I Association (as

3. The adequate marine insurance cover shall be secured from the

4. The tankers which require cover as stipulated in MC184 shall secure

5. Current Members entered with the International Group of P&I Clubs in

7. The ships covered by International Group of P&I Clubs are deemed in

1. The adequate marine insurance shall cover the following:

2. Non-coverage of any of the above mentioned liabilities shall be

3. The following shall be added to the adequate marine insurance in the

c. Loss of life, illness and personal injury(passenger/third

4. The non-motorized ships, however, shall be covered only from

5. The concerned persons, corporations, partnerships, cooperatives and

6. Shipowners who will comply with this circular by 20 February 2009,

7. The MARINA shall publish through, an advisory a list of P&I compliant

VI. LIMITS OF LIABILITY:

COVERAGE GROSS TONNAGE MINIMUM LIMIT OF

VII. SANCTIONS AND PENALTIES:

VIII. PORT STATE:

Liabilities arising from wreck removal

Loss of life, illness and personal injury (Seaman /third parties)

Loss of life, illness and personal injury (passenger)

Any provision of existing MARINA Circulars, Rules and Regulations

XI. SEPARABILITY CLAUSE:

Should any provision or part of this Circular be declared by

This Circular shall take effect immediately after publication in a

Manila, Philippines, 04 February 2009.

BY THE AUTHORITY OF THE MARINA BOARD:

(Sgd.) MARIA ELENA H. BAUTISTA

This is to certify that the foregoing Memorandum Circular No. 2009-01

MARITIME INDUSTRY AUTHORITY (MARINA)

The accredited insurers on compulsory insurance requirement for ships in

1. National Mutual Protection and Indemnity Association of the

2. The Japan Ship Owners’ Mutual Protection & Indemnity Association

3. Assurance foreign Gard (Gjensidig)

4. The United Kingdom Mutual Steam Ship Assurance Association

5. American Steamship Owners Mutual Protection and Indemnity

6. Gard P&I (Bermuda) Limited

7. Skuld Mutual Protection and Indemnity Association (Bermuda) Limited

8. The London Steam-Ship Owners' Mutual Insurance Association Limited

9. The North of England Protecting and Indemnity Association Limited

10. The Shipowners' Mutual Protection and Indemnity Association

11. The Standard Steamship Owners' Protection and Indemnity Association