Taiwan to Review Ship's P&I Coverage and Expand Patrols to Protect Ports

Taiwan has been on high alert as it fears Chinese efforts at sabotage of the island’s critical offshore infrastructure. Officials are now detailing a number of new steps planned to further increase its deterrence, including a new insurance requirement designed to ensure the efficacy of P&I insurance.

The Maritime & Port Bureau (MOTC) issued a warning to shipowners on September 10 that starting next month, it will be introducing a new system for reviewing a shipowner’s liability insurance. As of October 15, vessels applying to enter or leave Taiwan’s commercial ports are required to have insurance from a carrier with a credit rating of BBB or higher.

They note in the announcement that 96.7 percent of vessels qualify for the new system, but also warn that owners should take steps in the month leading up to the start of the system. A total of 47 insurers are currently eligible, including companies in Taiwan or participants in the International Shipowners' Mutual Insurance and Insurance Club. 

Ships that do not have acceptable insurance run the risk of being denied port entry, MOTC warns. It says insurers that have applied for the international credit ratings can have an extension to April 15, 2026. Otherwise, shipowners may provide a deposit and submit a P&I insurance policy for entry and exit from Taiwan’s ports.

Government officials note that they sought industry suggestions, including accepting a recommendation to delay implementation from July 1 to October 15, so owners could re-plan their insurance. It highlights that several announcements were made, including on May 14, to prepare owners for the change.

Taiwan continues to be especially concerned about a fleet of older vessels that it says are Chinese-owned and registered in third-world flags such as Togo and anchor off its shores. Since earlier this year, Taiwan has implemented a monitoring program between the navy and coast guard designed to identify suspect vessels. There have been several cases where Taiwan sent coast guard vessels to chase away ships. It also detained vessels and convicted one Chinese captain of intentionally causing damage to an undersea cable.

Taiwan is expanding these monitoring efforts, reporting that it will start maintaining 24-hour a day patrols. The focus will be on the Taiwan Strait to monitor undersea cables and act as a deterrent to vessels attempting to damage the country’s infrastructure.