Original 1971 Oil Pollution Compensation Fund Closes

MarineLink.com
Wednesday, November 06, 2013
Photo: Danish Maritime Authority

Several years ago, the 1971 Fund was replaced by the two subsequent Funds that pay higher compensations to the victims of oil pollution.

It was an international innovation when a global, solidary scheme on compensation for the victims of oil pollution caused by tankers was established with the 1971 Fund. It has proven to be such a great success that the system has been improved twice, and the model has been copied for other types of pollution from ships.

The 1971 Fund has been replaced by the 1992 Fund and the Supplementary Fund, allowing for greater compensation amounts and considering all new pollution incidents. Denmark was one of the first countries to accede to the higher compensation limits and, therefore, leaving the 1971 Fund 15 years ago.

Most countries agreed that now it was about time to wound up the 1971 Fund. Many of the original founders of the Fund, including the largest contributors, had also left the Fund. A few business affairs still need to be finalized. These cases have typically not been finalized because of disagreement between the Fund and the victims about the claims forwarded. Therefore, a winding up cannot be made without any legal and practical challenges. Efforts are being made to solve these before the IOPC General Assembly to be held in October 2014, when the final decision on the winding up is expected to be made.

At the meeting, the current compensation cases were also discussed. There was special interest in a judgment from the Venezuelan high court that the shipowner in a specific case (Nissos Amorgos) cannot limit his liability. The member States (except Venezuela) agreed that the decision was not in accordance with the international IOPC regulations. The consequence is that the shipowner's P&I insurance company must wrongfully pay the Venezuelan state $60 million as compensation for a claim that the Fund has already rejected to pay. At the meeting, it was debated whether the IOPC Fund is obliged to compensate the insurance company for this amount on the basis of the practice established between the Fund and the P&I insurance companies on the payment of compensation. A majority were of the view that this is not the case since the judgment is solely addressed to the P&I insurance company and not to the IOPC. Consequently, it was decided not to compensate the P&I insurance company. A few member States, including Denmark, found that the issue should be analyzed in more detail before making a decision. The P&I clubs, which disagreed strongly with the decision, will consider the situation.

A special consultative group chaired by Denmark met in connection with the IOPC meeting to consider more principle issues related to which types of ships are covered by the IOPC Fund system and how the victims of pollution can thus be covered for any oil damages suffered. The deliberations of the consultative group are to assist the working group established by the IOPC to solve the problem.

The next IOPC Fund meeting is to be held in May 2014.

dma.dk
 

Maritime Reporter February 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Cruise Line Agrees to $500K Settlement for Disguising Sales Calls as Political Surveys

Caribbean Cruise Line Inc. has agreed to a $7.73 million settlement after the Federal Trade Commission (FTC) and 10 state attorney generals sued the Fort Lauderdale-based

USCG Petty Officer Convicted, Sentenced

A Coast Guardsman was convicted and sentenced during a General Court-Martial in New Orleans, Thursday. Petty Officer 2nd Class Leonel Hinojosa, 32, was sentenced to reduction to E-1,

Hapag-Lloyd Warn About Verification by German Customs

Hapag-Lloyd has informed that for all import cargo to be discharged at the German ports of Hamburg and Bremerhaven the carrier is responsible to send a complete

Finance

Global LNG-Asia Prices Creep Higher on Japanese Demand

Asian spot liquefied natural gas prices edged higher as scattered demand from Japanese buyers and others helped stem the recent decline in prices, traders said on Friday.

Drop in Cocoa Bean Size Worries Ivorian Exporters

Dry weather in top cocoa grower Ivory Coast has caused a sharp drop in bean size and will delay the start of the April-to-September mid-crop by nearly two months,

Wärtsilä, CME Offer ‘Scrubber Finance’

Funding concept promotes installation of scrubber systems by offering financing to shipowners, with returns taken from fuel price spread   In a move intended

Environmental

First LNG-powered EcoLiner Launched

Europe’s greenest inland vessel debuts Damen group innovations   Damen Shipyards Group launched the first LNG-powered Damen EcoLiner inland shipping tanker

St. Lawrence Seaway Opening Date Pushed Back

Tthe opening date for the St. Lawrence Seaway 2015 navigation season has been delayed following review and consideration of factors and conditions affecting safe

Drop in Cocoa Bean Size Worries Ivorian Exporters

Dry weather in top cocoa grower Ivory Coast has caused a sharp drop in bean size and will delay the start of the April-to-September mid-crop by nearly two months,

Energy

OTC Names Technology Award Winners

The Offshore Technology Conference (OTC), which takes place May 4-7 in Houston, has announced 17 technologies that will receive the Spotlight on New Technology SM Award.

Global LNG-Asia Prices Creep Higher on Japanese Demand

Asian spot liquefied natural gas prices edged higher as scattered demand from Japanese buyers and others helped stem the recent decline in prices, traders said on Friday.

EU to Deliver Climate Pledge to UN

EU ministers agreed on Friday to send their formal promise on how much they will cut greenhouse gas emissions to the United Nations ahead of climate change talks starting in November.

News

OTC Names Technology Award Winners

The Offshore Technology Conference (OTC), which takes place May 4-7 in Houston, has announced 17 technologies that will receive the Spotlight on New Technology SM Award.

Jack W. Fisher Passes Away at 73

Jack W Fisher, president of JW Fishers Mfg. passed away at home after a brief illness on February 20, 2015. He was 73 years old.   The JW Fishers business was started because Fisher,

Global LNG-Asia Prices Creep Higher on Japanese Demand

Asian spot liquefied natural gas prices edged higher as scattered demand from Japanese buyers and others helped stem the recent decline in prices, traders said on Friday.

Offshore Energy

OTC Names Technology Award Winners

The Offshore Technology Conference (OTC), which takes place May 4-7 in Houston, has announced 17 technologies that will receive the Spotlight on New Technology SM Award.

New Floating Installation Concept for Offshore Wind

Conquest Offshore, together with deugro Denmark A/S, has developed an installation system for monopiles and transition pieces, supported by Temporary Works Design (TWD) and Barge Master.

Royal IHC Merges Four Units into IHC IQIP

Royal IHC (IHC) has integrated four of its business units – IHC Hydrohammer, IHC Handling Systems, IHC Sea Steel and IHC Fundex Equipment – into one new organization,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Salvage Ship Repair
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1657 sec (6 req/sec)