Maritime Transport Act 1994

Protection of marine environment from harmful substances - Powers of Director in relation to protection of marine environment from harmful substances

232: Director may require provision of financial security

You could also call this:

"The Director can ask ship owners to get insurance to pay for damage if they break the law and harm the sea."

If you own a ship and it releases a harmful substance into the sea, the Director might think you have broken the law. The Director can then ask you to get insurance or provide financial security to pay for any damage you might have caused under the Maritime Transport Act 1994, the Resource Management Act 1991, or the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012. The Director wants to make sure you can pay for any harm caused by the release of the harmful substance.

The Director will decide what kind of insurance or financial security you need to get, and how much it should be for. This is to make sure you can pay for any amounts you might owe under the Maritime Transport Act 1994, the Resource Management Act 1991, or the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012 because of the harmful substance release.

If you already have an insurance certificate under section 363 or the marine protection rules, the Director cannot ask you to get more insurance or financial security for the same ship.

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This page was last updated on 25 May 2025

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM337292.

231: Obligations of Director, Environmental Protection Authority, and regional councils to share information concerning notices, or

"Government agencies must share information about important notices to protect the marine environment."

233: Rectification of hazardous conditions, or

"Fixing things that harm the sea and seabed"

Part 19Protection of marine environment from harmful substances
Powers of Director in relation to protection of marine environment from harmful substances

232Director may require provision of financial security

This section applies if the Director has reasonable cause to believe that a harmful substance has been discharged or has escaped from a ship in breach of this Act, the Resource Management Act 1991, or the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012.
The Director may require the owner of the ship to provide a contract of insurance or other financial security of a kind and for an amount that is sufficient security for the payment of any amounts that may be payable by the owner, or the master of the ship, under this Act, the Resource Management Act 1991, or the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Act 2012 in respect of the discharge or escape.
The Director shall not exercise his or her powers under subsection (1A) in relation to a ship in respect of which an insurance certificate under section 363 or the marine protection rules has been issued, recognised, or accepted.

Notes

Section 232(1): replaced, on 31 October 2015, by section 47(1) of the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Amendment Act 2013 (2013 No 85).
Section 232(1): amended, on 23 December 2023, by section 6 of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 (2023 No 68).
Section 232(1A): inserted, on 31 October 2015, by section 47(1) of the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Amendment Act 2013 (2013 No 85).
Section 232(1A): amended, on 23 December 2023, by section 6 of the Resource Management (Natural and Built Environment and Spatial Planning Repeal and Interim Fast-track Consenting) Act 2023 (2023 No 68).
Section 232(2): amended, on 31 October 2015, by section 47(1) of the Exclusive Economic Zone and Continental Shelf (Environmental Effects) Amendment Act 2013 (2013 No 85).