1964_MERCHANT_SHIPPING_ORDINANCE — Page 38

1986 Ed.]

Merchant Shipping

[CAP. 281

1076 Where a policy of insurance has been issued under section 107D in favour of any person, the happening in relation to any person insured by the policy of any such event as is mentioned in subsection (1) or (2) of section 2 of the Third Parties (Rights against Insurers) Ordinance shall, notwithstanding anything in that Ordinance, not affect any such liability of that person as is required to be covered by a policy under section 107D(1)(b), but nothing in this section shall affect any rights against the authorized insurer conferred by that Ordinance on the person to whom the liability was incurred.

(2)

107H. (1) Where a policy of insurance has been issued under section 107D 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 following matters---

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

(b) the condition of the vessel; or

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

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

(e) the horsepower or value of the vessel's engine; or (f) the carrying on the vessel of any particular apparatus; or (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 this Ordinance or any regulations made hereunder,

shall, as respect such liabilities as are required to be covered by a policy under section 107D(1)(b), be of no effect:

Provided that 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, and any sum paid by an authorized insurer in or towards the discharge of any liability of any person which is covered by the policy by virtue only of this section shall be recoverable by the insurer from that person.

37

Bankruptcy, etc., of insured persons not to affect certain claims by third parties. (Cap. 273.)

Avoidance of restrictions on scope of policies covering third party risks.

61/8958

(2) Where a person uses, or causes or permits any person to use, a pleasure vessel in the waters of the Colony in such circumstances that under section 107C there is required to be in force in relation to his use of it such a policy of insurance in respect of third party risks as complies with the requirements of this Part, then, if any other person is carried aboard the 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 so far as 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 107D(1)(b) to be covered by a policy of insurance; or