Insurance laws Marshall Islands
The Marshall Islands, as a sovereign nation, has its own body of laws governing various aspects of life and commerce, including insurance. It's important to note that the insurance landscape in the Marshall Islands is particularly influenced by its role as a major flag state for international shipping.
Here's a breakdown of key aspects of insurance laws and regulations in the Marshall Islands:
1. Maritime Insurance (Most Prominent Area):
Third-Party Liability Insurance for Vessels: A significant portion of Marshall Islands insurance regulations revolves around maritime activities. The RMI Maritime Regulations (MI-108), particularly Section 2.23.2, mandates proof of satisfactory third-party liability insurance for all RMI-registered vessels as a condition for receiving a Certificate of Registry. This is crucial for compliance with various international conventions to which the RMI is a party, including:
International Convention on Civil Liability for Oil Pollution Damage (CLC)
International Convention on Civil Liability for Bunker Oil Pollution Damage (Bunkers)
Athens Convention Relating to the Carriage of Passengers and their Luggage by Sea (PAL)
Nairobi International Convention on the Removal of Wrecks (WRC)
Maritime Labour Convention, 2006 (MLC, 2006)
Protection and Indemnity (P&I) Clubs: Proof of insurance is typically provided through P&I cover from:
Member Clubs of the International Group of P&I Clubs.
Non-member P&I Clubs with a contractual reinsurance agreement with International Group members or, for non-tank vessels, membership in the Association of Commercial P&I Insurers.
Underwriter-Issued Insurance: For pleasure yachts, a combined third-party liability and hull and machinery insurance issued by an underwriter acceptable to the Maritime Administrator is required.
Self-Insurance: Self-insurance may be permitted in limited circumstances at the discretion of the Administrator, provided the nature, amount, and security of the liability reserve meet requirements.
Insurer Ratings: Third-party insurers, bonding companies, or other entities providing P&I cover generally need a strong credit rating (e.g., "A-" by A.M. Best or "A" by Standard & Poor's, or their equivalent, and now explicitly allows for Moody's and Fitch ratings as well).
Coverage Maintenance and Notice: Coverage must be maintained in full force, and written notice is required for any cancellation, alteration, or amendment, with specific timeframes depending on the governing convention.
MLC, 2006 Financial Security: The Marshall Islands has implemented amendments to the MLC, 2006, requiring financial security systems to assist seafarers in cases of abandonment and to provide compensation for contractual claims in the event of death or long-term disability.
2. Domestic Insurance:
Workers' Compensation: The Workers' Compensation Act of 2019 mandates worker's compensation coverage for most non-government employees through an authorized insurance carrier. The RMI Government Self-insurance Fund covers government workers. Small family-owned businesses with an annual gross income of not more than $25,000 may seek exemption from purchasing insurance.
Health Insurance: The Marshall Islands Health Fund Act of 2002 pertains to health care and outlines the administration and oversight of the Social Security Health Fund. The Marshall Islands does not operate a Consumer Assistance Program under the US Affordable Care Act.
General Insurance: While specific comprehensive "Insurance Acts" for general domestic insurance (like property, motor, etc.) are not as readily available in public searches as the maritime regulations, it's understood that a regulatory framework would exist. The Ministry of Finance, Banking & Postal Services likely plays a role in overseeing financial services, including insurance. The National Revenue Authority (NRA) is primarily responsible for taxation and revenue collection, though they may have requirements related to insurance for tax purposes or in their own procurement (e.g., medical insurance for staff).
Insurance Brokers: The UAE Central Bank issued "The Insurance Broker' Regulation 2024" which impacts how insurance brokerages operate in the UAE. While this is an international regulation, some Marshall Islands-based entities or those with business in the UAE might be impacted.
Key Regulatory Bodies/Sources:
Republic of the Marshall Islands Maritime Administrator (IRI - International Registries, Inc.): This entity is crucial for maritime-related insurance as they oversee RMI-flagged vessels.
Republic of the Marshall Islands Judiciary: Their website often provides access to selected regulations and acts.
RMI Parliament: Publishes legislation, including acts like the Workers' Compensation Act and Health Fund Act.
Marshall Islands Social Security Administration (MISSA) / Workers' Compensation Administration: Administers the workers' compensation program.
Ministry of Finance, Banking & Postal Services: Likely has oversight over broader financial services, including insurance.
Challenges and Considerations:
Accessibility of Information: Comprehensive and easily digestible information on all aspects of Marshall Islands insurance law can be challenging to find publicly online. Often, specific regulations are embedded within broader acts or maritime notices.
Dynamic Nature: Laws and regulations can change. It's always advisable to consult with legal professionals or relevant authorities in the Marshall Islands for the most current and specific information.
In summary, insurance laws in the Marshall Islands are heavily focused on its significant maritime industry, with clear requirements for third-party liability coverage for vessels. Domestic insurance laws exist for areas like workers' compensation and health, but may be less comprehensively documented online compared to the international maritime regulations.
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