Regulation 4 Insurance or security to be in force

Subject to paragraphs (2) and (3) below the owner, charterer and master of a ship shall ensure that there is in force in respect of the ship a contract of insurance complying with regulation 6 below insuring the owner against the liabilities mentioned in regulation 5.

In place of a contract of insurance there may be in force such other form of security as complies with regulation 6 below which will enable the owner to meet the liabilities mentioned in regulation 5.

Paragraphs (1) and (2) are without prejudice to any entitlement to limit liability provided by section 185 of the Act and contracts of insurance and security may be limited accordingly.