INTERTANKO Welcomes Agreement on Third Tier Supplementary Fund

Friday, May 16, 2003
Agreement on a Protocol to establish a supplementary third tier of compensation was reached at an IMO Diplomatic Conference this week. The Protocol as adopted would establish a supplementary Fund, intended to provide compensation over and above that currently available under the 1992 Civil Liability/Fund regime, thereby creating a third tier of compensation for pollution damage caused by oil spills at sea.

Together with the underlying 1992 CLC and FC regime, the new third tier supplementary fund, which will be available for adoption by interested states as a voluntary top-up to the existing regime, will provide compensation up to a level of 750 Million SDR (1 SDR=1,40656 USD). The proposed new fund, to be financed solely by receivers of oil in participating States, will be available only in respect of claims for pollution damage arising within States Parties to the Protocol, to the extent that such claims have not been fully satisfied under the existing 1992 regime. The Protocol further provides that payment under the supplementary fund will be triggered whenever there is a risk of the damage exceeding the applicable limit of compensation laid down in the 1992 Fund Convention.

As a result the IMO countries have again responded very quickly to concerns that the existing regime, even with the very substantial increases to take effect as from November 1, 2003, still provided insufficient compensation. These previously agreed amendments to the 1992 Protocols to the CLC and Fund raise the limits payable up to a maximum amount of compensation payable by the IOPC Fund for a single incident, including the limit established under the CLC amendments, to 203 million SDR, up from 135 million SDR prior to November 1, 2003.

Now governments who decide they need an even higher level of compensation available to claimants than that provided under the 1992 regime may sign up for the new regime, which will take effect three months after eight states with a combined tonnage of more than 450 million tons have ratified. This new regime will not affect the legal liabilities of tanker owners, but the shipowners gave an undertaking through the P&I Clubs to voluntarily increase the minimum limit of liability under the 1992 CLC to offset any perceived imbalance in contributions from the shipowners and cargo interests that may result from the establishment of the supplementary fund.

INTERTANKO is pleased that the protection of oil pollution victims has again been enhanced by establishing this international system for supplementary compensation of pollution victims and that this has been possible without unraveling the underlying regime governing tanker owners' liability.

Both INTERTANKO and ICS delegations participated actively in the deliberations. Source: INTERTANKO

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

Fundraiser Held for USS Gerald R. Ford Crew

Blackmer, a company in positive displacement and centrifugal pump and reciprocating compressor technologies, has a relationship with the U.S. Military that dates

Meercat Workboats Scores a Hat-trick

The U.K.’s Meercat Workboats says it scored a hat-trick; the Hampshire-based boat builder announced it is moving premises, that Seawork was a huge success and that

First MAN D2676 Workboat Engine Ready for Launch

Last December, MAN Engines introduced its latest generation in-line six-cylinder engines for workboats. Now the first MAN D2676 LE443 engine off the production

Environmental

Groningen Seaports First in Line for Damen InvaSave

The first production version of Damen’s InvaSave ballast water treatment system – intended for use at Groningen Seaports – will be on display at the upcoming ‘DelfSail’

Charting the Shift of Oceanic Boundary Currents

Global warming results in fundamental changes to important ocean currents. As scientists from the Alfred-Wegener-Institute show in a new study, wind-driven subtropical

Chemical Tanker Runs Aground off Alaska

A 599-foot Norway flagged chemical tanker Champion Ebony ran aground near Nunivak Island, Alaska on June 24.   U.S. Coast Guard Sector Anchorage watchstanders

 
 
Naval Architecture Navigation Offshore Oil Pipelines Port Authority Salvage Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0998 sec (10 req/sec)