(1) Petroleum activities conducted under a petroleum agreement or under a transportation, treatment or storage licence shall be covered by insurance at all times and in accordance with the Insurance Act, 2006 (Act 724) and other applicable enactments.

(2) The insurance shall include cover for

(a) damage to petroleum facilities,

(b) pollution damage and other liability towards third parties,

(c) wreckage removal and cleanup resulting from accidents, and

(d) employees of the contractor or of the licensee engaged in the activities.

(3) A contractor, licensee or the Corporation shall ensure that a sub-contractor insures the employees of the sub-contractor to the same extent as the contractor or licensee insures their own employees.

(4) A contractor, sub-contractor and the Corporation or a licensee shall procure reasonable insurance cover under subsection (2) (a) to (c).

(5) The Commission in consultation with the National Insurance Commission may give approval to the contractor or the licensee to arrange another form of security other than insurance cover.

(6) A contractor or licensee shall at the beginning of each year submit to the Commission copies of existing insurance policies.

(7) The Commission may require additional insurance to be procured.