11. This Part applies to civil liability for the deposit of waste by ships in arctic waters.
Evidence of Financial Responsibility
12. (1) Subject to section 13, the owner of any ship that proposes to navigate within any zone shall file with the Minister evidence of financial responsibility that may be in the form of
(a) a declaration stating that the ship is insured by an underwriter in respect of such proposed navigation in an amount determined in the manner provided by section 15; and
(b) the duplicate copy of a special policy endorsement for arctic waters applicable to that ship and certified by the underwriter, which endorsement shall provide that
(i) the ship owner shall maintain the policy of insurance applicable to that ship and the special policy endorsement in force so long as the ship is within any zone, and
(ii) it may only be cancelled by the underwriter by giving notice in writing to the Minister to be effective for the purposes of subsection 8(2) of the Act 30 days after receipt thereof by the Minister.
(2) Evidence of financial responsibility in the form described in paragraphs (1)(a) and (b) is satisfactory to the Governor in Council notwithstanding that the special policy endorsement for arctic waters states that in respect of any costs, expenses, actual loss or damage resulting from any deposit of waste caused by or otherwise attributable to the ship, the underwriter, in the case of a direct claim against him under subsection 8(2) of the Act, is not liable where
(a) the deposit of waste was caused by an act of war, hostilities, civil war or insurrection, or a natural phenomenon of an exceptional, inevitable and irresistible character;
(b) the deposit of waste was wholly caused by an act or omission of a person, other than the ship owner or a servant or an agent of the ship owner, done with intent to cause damage;
(c) the deposit of waste was wholly caused by the negligence or wrongful act of a government or other authority responsible for the maintenance of navigation lights or other aids to navigation in the exercise of that responsibility; or
(d) the deposit of waste was caused by wilful misconduct on the part of the ship owner.
(3) Notwithstanding anything contained in this section, the special policy endorsement for arctic waters may state that, in the case of a direct claim against him under subsection 8(2) of the Act, the underwriter may invoke any defence that would be or would have been available to the ship owner and that the maximum amount of the liability of the underwriter shall not, in any event, be greater than the maximum amount of the liability of the ship owner.
13. Where the quantity of waste to be carried in a ship that proposes to navigate in a zone does not exceed 2,000 tons, no evidence of financial responsibility need be filed, but the policy of insurance with respect to the ship may contain the statements set out in subsections 12(2) and (3).
14. The owner of any cargo to be carried in a ship that proposes to navigate in arctic waters shall be jointly responsible with the owner of the ship for the filing, by the owner of the ship, of the declaration described in paragraph 12(1)(a) and for the truth of any statement contained therein.
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