Transport Canada invites comments on Marine Insurance Fee

Canada Parliament

Transport Canada (TC) has invited public comment on their proposal to introduce a fee of $98 for the issuance of a marine insurance certificate. TC issues certificates to shipowners confirming they have provided proof of insurance adequate under the Conventions on civil liability for oil pollution. The Conventions apply to vessels greater than 1000 gross tons and to vessels carrying more than 2000 gross tons of persistent oils in bulk. This service is currently provided at no charge; TC estimates that it issues approximately 750 certificates annually.

The full Fee Modernization Proposal discusses the importance and utility of the service, and compares service standards and costs to UK, Australian, and New Zealand standards and costs. Interestingly, TC estimates that annual volume following accession to the Nairobi Convention on Wreck Removal will increase to as many as 3000 certificates per year, as the Convention requires wreck removal coverage on vessels of 300 gross tons or greater, dramatically expanding the size of the domestic fleet that will require certificates.

Readers should note that Bill C-64, the Wrecked, Abandoned or Hazardous Vessels Actincorporates the Nairobi Convention and received Royal Assent on 28 February 2019.

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