Section 165 Rights of third parties against insurers.C1

Where it is alleged that the F1registered owner of a ship has incurred a liability under section 153 as a result of any discharge or escape of oil occurring, or as a result of any relevant threat of contamination arising, while there was in force a contract of insurance or other security to which such a certificate as is mentioned in section F2163(2) related, proceedings to enforce a claim in respect of the liability may be brought against the person who provided the insurance or other security F3....

Where it is alleged that the owner of a ship has incurred a liability under section 153A as a result of any discharge or escape of bunker oil occurring, or as a result of any relevant threat of contamination arising, while there was in force a contract of insurance or other security to which such a certificate as is mentioned in section 163A(2) related, proceedings to enforce a claim in respect of the liability may be brought against the person who provided the insurance or other security.

In the following provisions of this section, “the insurer” means the person who provided the insurance or other security referred to in subsection (1) or subsection (1A), as the case may be.

In any proceedings brought against the insurer by virtue of this section F5in respect of liability under section 153 it shall be a defence (in addition to any defence affecting the F6registered owner's liability) to prove that the discharge or escape, or (as the case may be) the threat of contamination, was due to the wilful misconduct of the F7registered owner himself.

The insurer may limit his liability in respect of claims F8in respect of liability under section 153 which are made against him by virtue of this section in like manner and to the same extent as the F9registered owner may limit his liability F10under section 157 but the insurer may do so whether or not the discharge or escape, or (as the case may be) the threat of contamination, resulted from anything done or omitted to be done by the registered owner as mentioned in section 157(3).

Where the F11registered owner and the insurer each apply to the court for the limitation of his liability F12(in relation to liability under section 153) any sum paid into court in pursuance of either application shall be treated as paid also in pursuance of the other.

In any proceedings brought against the insurer by virtue of this section in respect of liability under section 153A it shall be a defence (in addition to any defence affecting the owner’s liability) to prove that the discharge or escape, or (as the case may be) the threat of contamination, was due to the wilful misconduct of the owner himself.

The insurer may limit his liability in respect of claims in respect of liability under section 153A which are made against him by virtue of this section in like manner and to the same extent as the owner may limit his liability by virtue of section 185; but the insurer may do so whether or not the discharge or escape, or (as the case may be) the threat of contamination, resulted from any act or omission mentioned in Article 4 of the Convention set out in Part I of Schedule 7.

Where the owner and the insurer each apply to the court for the limitation of his liability (in relation to liability under section 153A) any sum paid into court in pursuance of either application shall be treated as paid also in pursuance of the other.

The F14Third Parties (Rights against Insurers) Act 2010 shall not apply in relation to any contract of insurance to which such a certificate as is mentioned in section 163 F15or 163A relates.