Maritime NZ has published guidelines about a major increase required in insurance cover or other financial security for marine oil spills from offshore installations.
Amendments to the Marine Protection Rules Part 102 now require owners of offshore installations to have insurance or another form of financial security from a third party of up to $1.2 billion. This is an increase from approximately $28 million.
Maritime NZ Director, Keith Manch, said the insurance or other form of financial security is in addition to the unlimited liability imposed by the Maritime Transport Act for spill response costs and compensation for pollution damage to property.
The certificate of insurance provides assurance that the money that would be needed is available to meet the costs of clean up and compensation for damage to property in case of an oil spill.
Marine Protection Rules Parts 131 and 102 regulate offshore installations. They require an oil spill contingency plan and insurance or another form of financial security to cover the costs of clean up and damage to property.