Oil spilling on to a New Zealand beach from a grounded ship has brought to a head a call by the Insurance Council of NZ for compulsory insurance for all ships visiting the country. Transport Minister Mark Gosche now agrees that while only oil tankers are required to carry all-risks policies, the grounding of the log carrier Jody F Millennium off the north-east coast recently will change things.

The ship’s tanks, which contain several hundred tonnes of fuel oil, were ruptured when the ship ran aground during a storm. “It demonstrates that pollution risks are not confined to tankers,” Mr Gosche said. “The Maritime Transport Act already includes provision for making regulations to extend the compulsory regime relating to oil tankers.”

The Jody F Millennium is fully insured for all risks, but that does not mean that every ship entering NZ ports is adequately insured, he said. “The recent grounding highlights the sort of costs the community and government face if an uninsured vessel causes pollution to NZ coastlines.”