International Conventions on Marine Spills
International Convention on Civil Liability for Oil Pollution Damage ( CLC ):
Adoption: 29 November 1969; Entry into force: 19 June 1975; Being replaced by 1992 Protocol: Adoption: 27 November 1992; Entry into force: 30 May 1996
Plain language summary
The International Convention on Civil Liability for Oil Pollution Damage, 1992 (1992 CLC) was adopted by the International Maritime Organization to make ship-owners strictly liable for oil pollution damage from a ship and thus ensuring that compensation is available. The 1992 CLC covers ships carrying persistent oil as cargo (i.e. tankers). It also provides for compulsory insurance for ship owners to cover their liability.
Objective
The objective of this Convention is to ensure that compensation is available to those who suffer oil pollution damage from tankers in a State Party.
Key elements
The 1992 CLC places the liability for oil pollution damage on the owner of the ship from which the polluting oil escaped or was discharged. Oil pollution damage includes loss or damage caused by contamination, reasonable measures to reinstate the environment and preventive measures to prevent or minimize further damage.
Subject to certain defences, this liability is strict. The 1992 CLC also allows a ship-owner to limit their liability based on the limits set out in the Convention, which are based on the tonnage of the ship.
A ship-owner cannot limit liability if it is proved that the pollution damage resulted from the ship-owner's personal act or omission, committed with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result. The total amount of compensation available for the largest tankers is 89.770 million Special Drawing Rights.
The 1992 CLC requires ships to maintain adequate insurance or other financial security in sums equivalent to the owner's total liability. States Parties issue certificates attesting that insurance or financial security is in place.
The 1992 CLC applies to all seagoing vessels carrying oil in bulk as cargo, but only ships capable of carrying more than 2,000 tons of oil are required to maintain insurance or other financial security in respect of oil pollution damage.
India is a party to 1992 CLC convention ( Date of Notification/Deposit: 01/05/1987, Date of Effect: 30/07/1987 ) which requires ships carrying oil in bulk as cargo with quantity above 2000 tons to maintain insurance cover to deal with compensation matter in the event of oil pollution.
International fund for oil pollution damage compensation: 1992 Fund Convention:
The 1992 Fund Convention is intended to supplement the liability of the shipowner established under the International Convention on Civil Liability for Oil Pollution Damage, 1992. Thus, it ensures the sharing of the financial burden between the ship-owner and the cargo interests. The total amount of compensation available for a single incident is 203 million Special Drawing Rights, including the ship owner’s liability.
The 1992 Fund provides compensation when:
- the shipowner’s limit of liability is exceeded
- the shipowner is exempt from liability
- the shipowner is financially incapable of meeting their obligations and their insurance is insufficient to compensate
The 1992 Fund Convention creates an international organization known as the International Oil Pollution Compensation Fund and sets out the governance of the organization. It also sets out the obligations for reports and contributions to be made annually to the Fund.
India is a voluntary member of International Oil Pollution Compensation Fund 1992 which deals with compensation and payment for mitigating measures when CLC 1992 provisions are not adequate. These provisions have enacted in M. S. Act 1958.
International Convention on Civil Liability for Bunker Oil Pollution Damage (BUNKER):
The International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001, (Bunkers Convention) was adopted by the International Maritime Organization to make shipowners strictly liable for oil pollution damage from the ship and thus ensuring that compensation is available. The Bunkers Convention covers all seagoing ships and the pollution from the bunker oil used in their propulsion and operation. It also provides for compulsory insurance for shipowners to cover their liability.
Objective
The objective of this Convention is to ensure that compensation is available to those who suffer oil pollution damage from ships in a State Party. Bunker oil spills occur more frequently than spills from oil tankers.
Key elements
The Bunkers Convention places the liability for oil pollution damage on the owner of the ship from which the polluting oil escaped or was discharged. Oil pollution damage includes loss or damage caused by contamination, reasonable measures to reinstate the environment and preventive measures to prevent or minimize further damage.
Subject to certain defences, this liability is strict. The Bunkers Convention also allows a shipowner to limit their liability based on limits set out in the International Convention on the Limitation for Liability for Maritime Claims, which are based on the tonnage of the ship.
A shipowner cannot limit liability if it is proved that the pollution damage resulted from the shipowner's personal act or omission, committed with the intent to cause such damage, or recklessly and with knowledge that such damage would probably result.
The Bunkers Convention requires ships to maintain adequate insurance or other financial security in sums equivalent to the owner's total liability. State parties issue certificates attesting that insurance or financial security is in place.
The Bunkers Convention applies to all seagoing vessels carrying oil on board either for the propulsion or operation of the ship, but only ships of more than 1,000 gross tons are required to maintain insurance in respect of oil pollution damage.
The Convention on Limitation of Liability for Maritime Claims (LLMC Convention) allows shipowners to limit their liability to pay compensation for general ship-sourced damage. The LLMC Convention applies to claims for loss of life and personal injury, as well as loss of or damage to property. It also applies to pollution damage where no other Convention applies. Currently the only other relevant Conventions which apply in Australia are:
- the International Convention on Civil Liability for Oil Pollution Damage and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage which together establish a comprehensive liability and compensation regime applying to pollution damage resulting from the escape or discharge of oil from oil tankers; and
- the International Convention on Civil Liability for Bunker Oil Pollution Damage which establishes a liability and compensation regime applying to pollution damage resulting from the escape or discharge of bunker (or fuel) oil from ships other than oil tankers.
The LLMC Convention generally also applies to claims relating to wreck removal. However, along with nine other countries, Australia has lodged a reservation excluding the application of that part of the LLMC Convention. The effect of the reservation in Australia is that a shipowner is liable for all expenses associated with the removal of a wreck.
The LLMC Convention does not impose strict liability to pay compensation for damage on the shipowner. The amount of compensation that a court is able to award is limited by the LLMC Convention.
Under the LLMC Convention, the shipowner's liability limit is calculated based on the size of the ship. The liability limits set out in the LLMC Convention in respect of claims for property damage are as follows:
- 1.51 million Special Drawing Rights (SDR) for a ship with a gross tonnage not exceeding 2,000;
- for a ship with a gross tonnage in excess of 2,000, the following additional amount:
- for each ton from 2,001 to 30,000 tons, 604 SDR;
- for each ton from 30,001 to 70,000 tons, 453 SDR; and
- for each ton in excess of 70,000 tons, 302 SDR.
The liability limits in respect of claims for loss of life or personal injury are twice the limits that apply in respect of property claims.
There is a separate liability limit applying in respect of claims for loss of life or personal injury to passengers of a ship. In this case, the liability limit is 175,000 SDR multiplied by the number of passengers which the ship is authorised to carry.
There is no requirement for shipowners to gain and maintain insurance in the LLMC Convention. However, in Australia, Part IIIA of the Protection of the Sea (Civil Liability) Act 1981, requires ships entering or leaving Australian ports to be insured up to the limits in the LLMC Convention to cover the liability of the shipowner for pollution damage caused in Australia. Part IIIA does not apply where insurance is required by the International Convention on Civil Liability for Oil Pollution Damage or by the International Convention on Civil Liability for Bunker Oil Pollution Damage.
India is not a party to above conventions.
Comments