Civil Liability ConventionThe very first tier of compensation for oil spill damage is sourced from the Protection and Indemnity insurer of the vessel (P&I Club) on behalf of the shipowner below the International Convention on Civil Liability for Oil Pollution Harm (Civil Liability Convention or CLC). The International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Harm, 1992 (the 1992 Fund Convention). The limitation of liability may disappear exactly where it can be proved that the accident resulted from a private act or omission of the ship-owner, committed recklessly or with intent to cause damage, and with expertise that such damage would almost certainly occur. This is one more explanation for which the bareboat charterer, the manager and the operator (if a distinction among bareboat charterer and operator is conceivable in practice) would be compelled to insure their liability.

The 1992 Fund Convention established the International Oil Pollution Compensation Fund 1992 (1992 Fund) to give compensation for victims who are unable to obtain full compensation under the Civil Liability Convention. NB: Considering that the advent of the 1992 Protocol it is no longer doable for countries to ratify the 1969 Civil Liability Convention.

An examination of current international maritime practice shows that there are essential gaps in the regulation and implementation of responsibilities relating to pollution by vessels, specifically in situations of catastrophic accidents such as those of the oil tankers Erika” in 1999 and Prestige” in 2002. When an incident involving two or far more ships … Read the rest >>>