Your vessel is a significant investment, whatever the size, model or type. When you invest in a possession that has substantial value, it makes sense to research and understand the level of protection required to ensure it stays safe and meets obligatory requirements.
Official data has revealed that there were 20,497 small marine vessels registered with Transport Malta in April 2025. With such a number of boats and other vessels sailing the waterways of Malta, it is helpful for boat owners to know the facts about boat insurance and when they should invest in the policy.
In this article, we explore the legal requirements in Malta regarding boat insurance, when you might be obliged to have boat insurance and the benefits boat insurance can deliver for boat owners.
Contents
- What are the legal requirements in Malta regarding boat insurance?
- Third-party liability versus comprehensive boat insurance cover.
- When might you be required to have boat insurance in Malta?
- Real-world consequences of not insuring your boat.
- Explore comprehensive cover for genuine peace of mind with GasanMamo.
What are the legal requirements in Malta regarding boat insurance?
Malta requires insurance for many powered boats and this is related to the vessel’s engine power. Under Maltese law, mechanically driven watercraft with an engine exceeding 9.9 HP must have third-party liability insurance, with cover of at least €235,000 per incident.
This requirement applies to qualifying vessels operating in Malta, including local and international boats. Proof of appropriate insurance may also be required as part of the registration or renewal process with Transport Malta’s Small Ships Register.
Third-party liability versus comprehensive boat insurance cover
In Malta, the stated legal requirement for boat owners is to have third-party liability cover for their vessel. This is the minimum level of insurance needed for a mechanically powered vessel with an engine above the 9.9 HP threshold.
Third-party insurance is designed to cover the boat owner’s liability when use of the vessel causes bodily injury to another person or damage to someone else’s property. It does not generally insure the owner’s own boat against accidental damage, theft or other physical losses.
Comprehensive boat insurance cover, on the other hand, should cover accidental loss or damage to your vessel, including machinery, motors and equipment. Third-party liability for injuries or property damage is generally also a feature of comprehensive boat insurance.
When might you be required to have boat insurance in Malta?
There are several areas it is recommended to be aware of as a boat owner in Malta when it comes to insuring your vessel, including:
- Financing: Lenders in Malta may require you to have boat insurance as collateral for a loan against any loss or damage that could occur to your vessel.
- Chartering or commercial operations: Craft that carry passengers or that operate as a commercial vessel must hold active liability insurance to ensure commercial licences can be obtained and upheld.
- Marina, port or harbour access: Many ports, marina and harbours will ask for evidence of third-party liability insurance for damage or injury protection to other passengers, people or vessels.
Real-world consequences of not insuring your boat
If your boat is not insured and an accident or unexpected event takes place that causes damage or injury to yourself or others, you may find that costs could be extremely high.
There could be repercussions, such as:
- Liability for damage to others
Without boat insurance, damage to someone else’s property or a bodily injury to a third party could result in astronomical expenses that have the potential to impact your finances. You could be responsible for compensation claim costs and legal fees.
- Wreck removal
If your vessel has become damaged beyond repair, there still could be a cost to have the boat removed to clear waterways, free up space for other vessels and to reduce the possibility of environmental damage.
Under Maltese law, the registered owner of the vessel is entirely liable for all costs to locate and remove the wreck, typically carried out by Transport Malta or other relevant authority.
- No recourse for your own loss
Boat owners without insurance may not be aware that there is no financial compensation available if your boat suffers damage, is lost or stolen. This means that you will have to pay out of your own pocket if an incident like this happens to your vessel.
Learn more in our article: How to claim on your boat insurance after damage, sinking or a wreck
Explore comprehensive cover for genuine peace of mind with GasanMamo
It is important for boat owners to think about the level of cover they require for the vessel in relation to its value and boat use. For example, it can help to balance the cover level against the vessel’s replacement cost and potential liabilities.
Responsible vessel owners will also want to make sure they meet any legal requirements in Malta for their boat and specific marina obligations, if the vessel moors or spends time in a marina.
Making sure that you’re covered for any potential situation can reassure you as a boat owner, allowing you to enjoy your vessel as much as possible.
Read more in our article: A practical guide to marine insurance for boat owners
Begin your own search for the right plan in Malta by looking through our clear and transparent benefits on our boat insurance page.
GasanMamo Insurance is authorised under the Insurance Business Act and regulated by the MFSA.
