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Compulsory Insurance (Third Party Liability) Requirements for Fishing Vessels: a Case for the Introduction of Compulsory Fishing Vessel Insurance in the Caribbean

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Compulsory Insurance (Third Party Liability) Requirements for Fishing Vessels: a Case for the Introduction of Compulsory Fishing Vessel Insurance in the Caribbean FIAO/ SLC/ C1199 (En) FAO Fisheries and Aquaculture Circular ISSN 2070-6065 COMPULSORY INSURANCE (THIRD PARTY LIABILITY) REQUIREMENTS FOR FISHING VESSELS: A CASE FOR THE INTRODUCTION OF COMPULSORY FISHING VESSEL INSURANCE IN THE CARIBBEAN Cover photographs by Iris Monnereau and Raymon van Anrooy (2016-2017): Fishing vessels from Grenada, Barbados and Dominica FAO Fisheries and Aquaculture Circular No.1199 FIAO/SLC/C1199 (En) COMPULSORY INSURANCE (THIRD PARTY LIABILITY) REQUIREMENTS FOR FISHING VESSELS: A CASE FOR THE INTRODUCTION OF COMPULSORY FISHING VESSEL INSURANCE IN THE CARIBBEAN by Norman A. Martinez Gutierrez Consultant Malta Raymon van Anrooy Senior Fishery Officer Fishing Operations and Technology Branch FAO Fisheries and Aquaculture Department Rome, Italy FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS Rome, 2020 Required citation: Martinez, N. A. & van Anrooy, R. 2020. Compulsory insurance (third party liability) requirements for fishing vessels: a case for the introduction of compulsory fishing vessel insurance in the Caribbean. FAO Fisheries and Aquaculture Circular No. 1199. Rome, FAO. https://doi.org/10.4060/ca7732en The designations employed and the presentation of material in this information product do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations (FAO) concerning the legal or development status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries. The mention of specific companies or products of manufacturers, whether or not these have been patented, does not imply that these have been endorsed or recommended by FAO in preference to others of a similar nature that are not mentioned. The views expressed in this information product are those of the author(s) and do not necessarily reflect the views or policies of FAO. ISBN 978-92-5-132206-2 ISSN 2070-6065 (print) © FAO, 2020 Some rights reserved. This work is made available under the Creative Commons Attribution-NonCommercial-ShareAlike 3.0 IGO licence (CC BY-NC-SA 3.0 IGO; https://creativecommons.org/licenses/by-nc-sa/3.0/igo/legalcode). Under the terms of this licence, this work may be copied, redistributed and adapted for non-commercial purposes, provided that the work is appropriately cited. In any use of this work, there should be no suggestion that FAO endorses any specific organization, products or services. The use of the FAO logo is not permitted. If the work is adapted, then it must be licensed under the same or equivalent Creative Commons licence. If a translation of this work is created, it must include the following disclaimer along with the required citation: “This translation was not created by the Food and Agriculture Organization of the United Nations (FAO). FAO is not responsible for the content or accuracy of this translation. The original [Language] edition shall be the authoritative edition.” Disputes arising under the licence that cannot be settled amicably will be resolved by mediation and arbitration as described in Article 8 of the licence except as otherwise provided herein. The applicable mediation rules will be the mediation rules of the World Intellectual Property Organization http://www.wipo.int/amc/en/mediation/rules and any arbitration will be conducted in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). Third-party materials. Users wishing to reuse material from this work that is attributed to a third party, such as tables, figures or images, are responsible for determining whether permission is needed for that reuse and for obtaining permission from the copyright holder. The risk of claims resulting from infringement of any third-party-owned component in the work rests solely with the user. Sales, rights and licensing. FAO information products are available on the FAO website (www.fao.org/publications) and can be purchased through [email protected]. Requests for commercial use should be submitted via: www.fao.org/contact- us/licence-request. Queries regarding rights and licensing should be submitted to: [email protected]. iii PREPARATION OF THIS DOCUMENT This publication summarizes the findings of an assessment of legal frameworks in five Caribbean countries (Barbados, Dominica, Saint Kitts and Nevis, Saint Vincent and the Grenadines and Trinidad and Tobago) in terms of entry points for introducing fishing vessel insurance, which was carried out in 2019. This circular also contains an overview of international conventions governing marine insurance and examples of mandatory fishing vessel insurance legislation from selected countries. Example regulations to facilitate introduction of compulsory third party liability insurance for fishing vessels have also been developed and are presented in this circular. The information provided in this publication was presented in draft form to a Stakeholder Meeting on Fisheries Insurance Legislative Frameworks for the Caribbean, which was held at the United Nations House in Barbados on 15 November 2019. The Stakeholder Meeting was attended by representatives of fisheries, finance and maritime authorities and the private sector from Barbados, Dominica, Saint Kitts and Nevis, Saint Vincent and the Grenadines and Trinidad and Tobago, as well as various officers and consultants from the Food and Agriculture Organization of the United Nations (FAO). This document contains in an annex a summary record of the presentations and discussions at the Stakeholder Meeting. The activities on fisheries insurance in the Caribbean in 2019 were carried out to contribute to the achievement of Sustainable Development Goal (SDG) #1 target 1.5: “By 2030, build the resilience of the poor and those in vulnerable situations and reduce their exposure and vulnerability to climate-related extreme events and other economic, social and environmental shocks and disasters”. The activities are expected to assist in mitigation of the effects of shocks among fishers and their communities, as well as to support implementation of recommendations from the 2016 FAO-World Bank Assessment of insurance needs and opportunities in the Caribbean fisheries sector. The assessment study and Stakeholder Meeting were funded by the FAO Framework for Linking Responses to Rural Poverty and Climate Change with a focus on coastal communities, coastal areas and Small Island Developing States and the Global Environment Facility (GEF) supported FAO implemented project on Climate Change Adaptation in the Eastern Caribbean Fisheries Sector (CC4Fish). The FAO Fishing Operations and Technology Branch (FIAO), FAO Development Law Service (LEGN), and secretariat of the Western Central Atlantic Fishery Commission (WECAFC) technically supported implementation of the activities that resulted in this circular. iv ABSTRACT Fishing is amongst the most dangerous occupations in the world and accidents and fatalities in small- scale fisheries are common. Many fisherfolk who get an accident during their working life, cannot work for some time or end up disabled. This creates financial and social hardship for these fishers and their families. Introduction of third party liability insurance will protect boat owners and crew of fishing vessels, reduce the vulnerability of fishers and their families to shocks caused by accidents in fishing, and will contribute to sustainable fisheries livelihoods. An estimated 3 percent of the fishing vessels operating in the Caribbean region are currently insured and less than 20 percent of the fishers have life and/or health insurance cover. Recommendations have been made by fisheries authorities in the Caribbean for introducing third-party liability insurance for commercial vessels, similarly as vehicle insurance, which is mandatory throughout the Caribbean. Fisherfolk organizations are supportive of such insurance, particularly as it will provide cover for crew of fishing vessels as well. This circular summarizes the findings of an FAO assessment of legal frameworks in five Caribbean countries (Barbados, Dominica, Saint Kitts and Nevis, Saint Vincent and the Grenadines and Trinidad and Tobago) in terms of entry points for introducing fishing vessel insurance. It also contains an overview of international conventions governing marine insurance and examples of mandatory fishing vessel insurance legislation from selected countries. The origins of compulsory third party liability insurance in the maritime industry and its introduction in international instruments (e.g. the Bunkers Convention, the Wreck Removal Convention, and the EU Directive 2009/20/EC) are discussed. The benefits of introducing compulsory third party liability insurance for everyone involved in the fisheries industry (claimants, shipowners, and society in general) in line with those in the merchant shipping industry are presented. Model regulations to facilitate introduction of compulsory third party liability insurance for fishing vessels are provided, as well as information to support fishers’ awareness raising and capacity building on this subject. This circular also contains the proceedings of a Stakeholder Meeting on Fisheries Insurance Legislative Frameworks for the Caribbean, held on 15 November 2019 in Barbados, where the assessment findings, best-practices and model regulations were presented. This circular makes a case for introduction of compulsory third party liability insurance for fishing vessels in the Caribbean, and
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