Hong Kong Ordinances

MERCHANT SHIPPING (LIABILITY AND COMPENSATION FOR OIL POLLUTION) ORDINANCE - SECT 17

Rights of third parties against insurers

(Past version on 30/06/1997).

(1) Where it is alleged that the owner of a ship has incurred a liability
under section 6 as a result of an incident involving the ship occurring while
there was in force a contract of insurance or other security to which a
certificate referred to in section 15 related, legal proceedings to enforce a
claim in respect of the liability may be brought against the person who
provided the insurance or other security (in this
section referred to as "the insurer").

(2) In any proceedings brought against the insurer by virtue of this section
it shall be a defence (in addition to any defence affecting the owner's
liability) to prove that the incident was due to the wilful misconduct of the
owner himself.

(3) The insurer may under section 10 limit his liability in respect of claims
made against him by virtue of this section in like manner and to the same
extent as the owner may limit his liability but the insurer may do so whether
or not the incident resulted from anything done or omitted to be done by the
owner as mentioned in section 9(3).

(4) Where the owner and the insurer each apply to the court under section 10
for the limitation of his liability any sum paid into court in pursuance of
either application shall be treated as paid also in pursuance of the other.

(5) The Third Parties (Rights against Insurers) Ordinance ( Cap 273) shall not
apply in relation to any contract of insurance to which a certificate referred
to in section 15 relates. (Enacted 1990. Amended 46 of 1997 s. 12)