delete The Merchant Shipping (Compulsory Insurance of Shipowners for Maritime Claims) Regulations 2012
These Regulations implement EU Directive 2009/20/EC requiring shipowners of seagoing vessels of 300+ gross tonnes to maintain compulsory insurance covering maritime claims up to 1996 Convention limitation amounts. They mandate insurance certificates, documentation on board, port state control detention powers for non-compliant ships, and create criminal offences with fines for breaches. The regulations include a review mechanism.
This regulation imposes substantial compliance costs (insurance premiums, administrative burdens, certificate requirements) on shipowners with no demonstrated benefit beyond what the 1996 Convention's liability limitation framework already provides. As a retained EU law, it was inherited without parliamentary scrutiny. The insurance mandate is essentially a tax on shipping that raises costs for UK ports and may drive vessels to use competing jurisdictions. The underlying goal—ensuring claimants can recover compensation—is already served by existing maritime liability conventions and commercial insurance markets. The regulations create bureaucratic verification requirements, detention powers, and offence provisions that add regulatory friction without proportionate benefit.