Accident Liability Protection for Vessels

In the Harbors and Navigation Code, Division 3, Chapter 5, Article 2.9, it deals with accident liability protection for the operation and equipment of vessels.

Section 759 provides definitions for the following terms: “company,” “division,” “for-hire vessel,” and “for-hire vessel company.”

Section 759.2 specifies the division is to require every for-hire vessel company to procure, and continue in effect so long as the for-hire vessel company continues to offer its services for compensation, adequate protection against liability imposed by law upon a for-hire vessel company for the payment of damages for personal bodily injuries, including death resulting from those services, and property damage as a result of an accident.

Section 759.4 requires the division, after a public hearing, to set the amount of liability insurance that is reasonably necessary to provide adequate compensation for damage incurred through an accident involving a for-hire vessel company. This amount must be subject to periodic adjustment pursuant to the process described in this article.

Section 759.6 states that the required protection must be evidenced by deposit with the division, covering each vessel used or to be used in for-hire vessel operations for compensation, of any of three specified forms.

Section 759.8 states that, with the consent of the division, a copy of an insurance policy, certified by the company issuing it to be a true copy of the original policy, or a photostatic copy thereof, or an abstract of the provisions of the policy, or a certificate of insurance issued by the company issuing the policy, may be filed with the division in lieu of the original or a duplicate or counterpart of the policy.

Section 759.10 requires the protection against liability to be continued in effect so long as the for-hire vessel company continues to offer its services for compensation.

Section 759.12 allows the division to establish rules as are necessary to enforce this article. Section 759.14 provides that any for-hire vessel company that knowingly refuses or fails to procure protection against liability is guilty of a misdemeanor.

Section 759.16 authorizes the division to impose, upon an administrative hearing, a penalty of not $50 nor more than $1,000 upon any for-hire vessel company that violates any provision of this article or that fails to obey, observe, or comply with any rule established by the division.

Section 759.18 states that, upon filing of the evidence of liability protection, the division is required to provide a certificate of filing to the for-hire vessel company.

Section 759.20 specifies that, upon receiving notification of impending cancellation of liability protection pertaining to a for-hire vessel company, the department is required to revoke the certificate provided to the company and notify the company of this revocation. The company must return the revoked certificate to the division.

Section 759.22 provides that rules and regulations adopted by the Public Utilities Commission pursuant to its prior authority over insurance of for-hire vessel companies must remain in effect until revised or repealed by the division.