Hong Kong Ordinances

MERCHANT SHIPPING (LOCAL VESSELS) ORDINANCE - SECT 23I

Avoidance of restrictions on scope of policies covering third party risks

(1) Where a policy of insurance has been issued for the purposes of
section 23C(1) in favour of any person, so much of the policy as purports to
restrict the insurance of the persons insured thereby by reference to any of
the matters specified in subsection (2) shall be of no effect as respect such
liabilities as are required to be covered by a policy under section 23D(1)(c).

(2) The matters referred to in subsection (1) are—

   (a)  the age or physical or mental condition of persons in charge of the
        local vessel;

   (b)  the condition of the vessel;

   (c)  the number of persons that the vessel carries;

   (d)  the times at which or the areas within which the vessel is used;

   (e)  the propulsion power or value of the vessel’s engine;

   (f)  the carrying on the vessel of any particular apparatus;

   (g)  the carrying on the vessel of any particular means of identification
        other than any means of identification required to be carried by or
        under any regulations made under section 89.

(3) Nothing in this section shall require an authorized insurer to pay any sum
in respect of the liability of any person otherwise than in or towards the
discharge of that liability.

(4) Any sum paid by an authorized insurer in or towards the discharge of any
liability of any person which is covered by the policy of insurance by virtue
only of this section shall be recoverable by the insurer from that person.

(5) Where—

   (a)  a person uses, or causes or permits any person to use, a local  vessel
        to which this Part applies in the waters of Hong Kong;

   (b)  the person uses, or causes or permits any other person to use the
        local vessel in such circumstances that under section 23C there is
        required to be in force in relation to the use of the vessel by that
        person or that other person, as the case may be, such a policy of
        insurance as complies with section 23D; and

   (c)  any other person is carried aboard the local vessel while the user is
        so using it, any antecedent agreement or understanding between them
        (whether intended to be legally binding or not) shall be of no effect
        to the extent specified in subsection (6).

(6) Any antecedent agreement or understanding described in subsection (5)
shall be of no effect to the extent that it purports or might be held—

   (a)  to negative or restrict any such liability of the user in respect of
        persons carried in or upon the vessel as is required by section  23D
        (1)(c) to be covered by a policy of insurance; or

   (b)  to impose any conditions with respect to the enforcement of any such
        liability of the user.

(7) The fact described in subsection (8) shall not be treated as negativing
any liability of the user in respect of persons carried in or upon the vessel
as is required by section 23D(1)(c) to be covered by a policy of insurance.

(8) The fact referred to in subsection (7) is that a person carried aboard a
local vessel as described in subsection (5)(c) has willingly accepted as his
the risk of negligence on the part of the user of the vessel.

(9) For the purposes of this section—

   (a)  references to a person being carried aboard a vessel include
        references to a person embarking or disembarking from the vessel; and

   (b)  the reference to any antecedent agreement is to one made at any time
        before the liability arose. (Part VA added 24 of 2005 s. 9)