What's happening
This bill requires public vessels carrying passengers on New York waters to have liability insurance or proof of financial responsibility.
Why it matters
Protects Passengers and the Public. By requiring liability insurance or proof of financial responsibility, the bill ensures that passengers and others harmed in accidents involving public vessels have a clear path to compensation for injuries or deaths.
Raises Safety and Accountability Standards. Vessel operators must demonstrate financial readiness before being allowed to operate, which may encourage more careful operation and maintenance of public vessels to avoid costly claims and penalties.
Potentially Impacts Vessel Operators’ Costs. The insurance or bonding requirement, with a minimum coverage of $1 million per occurrence, could increase operating costs for vessel owners, possibly affecting ticket prices, business viability, or the number of vessels in service.
Includes Flexibility for Large Operators. The bill allows for a self-insurance option if an owner can prove sufficient financial resources, which may benefit larger companies or municipalities with the means to cover substantial liability directly.
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Who cares
Headline styles
Require Boat Passenger Insurance
Plain English, a few words. Used as the page title.
Sponsors
Senator · Senate District 45
No co-sponsors yet.
History
- Referred to cultural affairs, tourism, parks and recreation
- Referred to rules
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
6829
2017-2018 Regular Sessions
IN SENATE
June 23, 2017
Introduced by Sen. LITTLE -- read twice and ordered printed, and when printed to be committed to the Committee on Rules
AN ACT to amend the navigation law, in relation to requiring certain policies of insurance for public vessels which carry passengers
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 50 of the navigation law, as amended by chapter 672 of the laws of 1962, is amended to read as follows:
§ 50. Owners to notify inspector and apply for inspection. It shall be the duty of the owner of a public vessel which he intends to operate on the navigable waters of the state to notify the inspector of such intention at least one month before it is desired to place the vessel in operation and to request an inspection of such vessel. Upon receipt of such notification the inspector shall enter the application on the records of his office. A temporary permit to operate such vessel pending inspection may be issued by the inspector, if he finds through documentary evidence that such vessel is properly equipped and manned for the safety of life and property. No public vessel shall be used or operated without a certificate of inspection or a temporary permit as [herein] provided in this section. No certificate of inspection or temporary permit shall be issued unless the owner of a public vessel produces proof of insurance to the inspector in accordance with section fifty-one of this part.
§ 2. The navigation law is amended by adding two new sections 51 and 52 to read as follows:
§ 51. Liability insurance on public vessels. 1. Every public vessel certified to carry passengers which is operated on the navigable waters of the state, except vessels which navigate on waters which the United States exercises active control, shall be covered by a corporate surety bond or a policy of protection and indemnity insurance, issued by an insurer authorized to issue policies in this state pursuant to the
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD13283-01-7
S. 6829 2
insurance law. Public vessels certified by the office of parks, recreation and historic preservation to carry passengers shall provide coverage of at least one million dollars per occurrence for injury to or death of any person arising out of the negligent operation of said public vessel.
Every such bond or insurance policy shall contain a provision for a continuing liability thereunder, notwithstanding any recovery thereon, and shall be in full force and effect whenever the public vessel is underway.
2. No policy or contract shall be issued or delivered in this state pursuant to this section unless it contains in substance the provisions of section three hundred twenty of the insurance law.
3. Proof of bond or insurance required by this section shall be produced and displayed by the owner or operator of such public vessel upon the request of any person having authority to enforce the provisions of this chapter. The failure to produce such proof upon the request of any such person shall not be an offense but shall be presumptive evidence that the public vessel is being operated without having such bond or insurance in force and effect.
4. No owner of a public vessel shall operate or permit the same to be operated upon the navigable waters of this state without having in full force and effect the liability insurance coverage required by this section, and no person shall operate a public vessel upon the navigable waters of this state with knowledge that such insurance is not in full force and effect.
5. Operation of a public vessel in violation of the requirements of this section shall be punishable as a misdemeanor in accordance with section seventy-three-b of this article.
§ 52. Self-insurers. The commissioner may, in his or her discretion, upon the application of an owner of a public vessel to have such public vessel certified, issue a certificate of self-insurance when he or she is reasonably satisfied that such person is possessed and will continue to be possessed of the financial ability to respond to judgments obtained against such person, arising out of the ownership, maintenance, use or operation of any such person's public vessel. Upon due notice and hearing, the commissioner may, in his or her discretion and upon reasonable grounds, cancel a certificate of self-insurance.
§ 3. This act shall take effect on the ninetieth day after it shall have become a law.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the navigation law, in relation to requiring certain policies of insurance for public vessels which carry passengers
Purpose
To require public vessels which carry passengers to be covered by insurance or a surety bond covering injury or death to the passengers.
Summary of provisions
Section 1 amends the Navigation Law Section 50 of chapter 672 of the laws of 1962 by requiring no certificate of inspection or temporary permit shall be issued unless the owner of a public vessel produces proof of insurance to the inspector in accordance with section fifty-one of this part.
Section two amends the Navigation Law by adding two new sections 51 and 52 of liability insurance on public vessels. Every public vessel certified to carry passengers which is operated on the navigable waters of the state, except vessels which navigate on waters which the United States exercises active control, shall be covered by a corporate surety bond or a policy of protection and indemnity insurance, issued by an insurer authorized to issue policies in this state pursuant to the insurance law.
Section three amends the effective date (ninetieth day after it shall become law).
Justification
A tragic capsizing of the Ethan Allen on Lake George, on October 2, 2005, resulted in the deaths of 20 individuals. After an investigation of a Panamanian global money-laundering and tax evasion scheme, it was revealed that a fake $2 million liability insurance policy was held by the owners of the Ethan Allen tour boat. The Ethan Allen owner discovered soon after the accident that the insurance policy he bought was backed up by non-existent assets.
This bill addresses the current gap in law to require every public vessel certified to carry passengers which is operated on the navigable waters of the state, except vessels which navigate on waters which the United States exercises active control, shall be covered by a corporate surety bond or a policy of protection and indemnity insurance, issued by an insurer authorized to issue policies in this state pursuant to the insurance law.
Legislative history
New bill.
Fiscal implications
None.
Effective date
Ninetieth day after it shall have become a law.
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