WQIS Prepared for COFR Limit Increase

Sunday, January 18, 2009

On July 11, 2006 the President signed into law Title VI of the Coast Guard and Maritime Transportation Act of 2006, which increased the limits of liability for vessels under OPA 90. It also split the tank vessel category into single and double hulls with single hulls having higher limits. Those limits went into effect in 2006. However, the requirement for evidence of financial responsibility required to obtain a Certificate of Financial Responsibility (COFR) was not increased at that point. Meaning, existing COFRs remained valid.

By a notice in the Federal Register/Vol. 73, No.181/Wednesday, September 17, 2008 the Coast Guard promulgated regulations implementing the new COFR regulations to take effect from January 15, 2009. As of that date, the financial guaranty or insurance to the U.S. Coast Guard must meet or exceed the 2006 revised COFR limits.

Limits have changed as follows:

Double hulled tank vessels, over 3,000 Gross Tons:
Old limits-the greater of $1,200 per gross ton or $10,000,000
New limits-the greater of $1,900 per gross ton or $16,000,000

Double hulled tank vessels, 3,000 or less gross tons:
Old limits-the greater of $1,200 per gross ton or $2,000,000
New limits-the greater of $1,900 per gross ton or $4,000,000

Singe hulled tank vessels, over 3,000 gross tons:
Old limits-The greater of $1,200 per gross ton or $10,000,000
New limits-the greater of $3,000 per gross ton or $22,000,000

Singe hulled tank vessels, 3,000 or less gross tons:
Old limits-the greater of $1,200 per gross ton or $2,000,000
New limits-the greater of $3,000 per gross ton or $6,000,000

Non-tank vessels:
Old limits-the greater of $600 per gross ton or $500,000
New limits-the greater of $950 per gross ton or $800,000

*Includes single hull, double sides only or double bottom only.

Anticipating these changes, Water Quality Insurance Syndicate (WQIS) has already re-filed its financial responsibility (CG 5586 and or CG 5586-1) with the Vessel Certification Branch of the USCG National Pollution Funds Center on behalf of all WQIS assureds for which evidence is currently provided. The only exceptions are assureds who have not purchased limits that are equal to or greater than the new limits shown above. In the event a WQIS assured has not yet obtained the sufficient limit to fulfill the requirements of Title VI, please contact your WQIS underwriter immediately.

WQIS is a U.S.-based underwriter of pollution liability insurance for marine vessels. With over 37 years in the industry, no one has more marine pollution insurance and spill response expertise, or offers more innovative coverage to the marine community. WQIS is dedicated to providing the broadest coverage and creating the most responsive organization to serve the needs of their clients.

Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

News

7 Rescued from Sinking Freighter Near Haiti

Seven crewmembers were rescued after their 100-foot coastal freighter began taking on water and sank approximately 45 miles north off of Cap Haitien, Haiti, Friday.

Gazprom Transgaz Ufa Organizes Arts Festival

Over 200 healthy children and children with disabilities from Bashkortostan as well as the Volga Region participated in the Breaking the Barriers second interregional children’s arts festival,

Time-out for Kwanza Drilling

Statoil has decided to cancel the Stena Carron rig contract after fulfilling the work commitments in the Statoil-operated blocks 38 and 39 in the Kwanza basin offshore Angola.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Offshore Oil Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3894 sec (3 req/sec)