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The 1971 Fund has been replaced by the 1992 Fund and the Supplementary Fund, allowing for greater compensation amounts and considering all new pollution incidents.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 July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Finance

Work Begins on $1.6 bln Container Terminal at Jebel Ali Port

DP World Chairman Sultan Ahmed Bin Sulayem announced the start of construction work on a brand new container terminal at Jebel Ali Port, Dubai.   Phase 1 of the

Singapore MPA Wants LNG Bunkering Options

Singapore's Maritime Port Authority is seeking proposals on liquefied natural gas bunker supplies as it shifts away from fossil fuels towards gas while trying to

China's Navy Drills in South China Sea

China said it conducted air and sea drills in the South China Sea on Tuesday as it stakes an increasingly assertive claim to virtually the whole sea despite rival claims by neighbours.

Environmental

Self-lubricating Bearing Polymer: Safe, Easy to Machine

Many plastics and metallic alloys present machining challenges as some deform and are difficult to maintain exacting tolerances, while others require strict and

Diesel Spill in Houston Ship Channel

A small section of the Upper Houston Ship Channel was closed Tuesday morning after a report of 1,000 gallons of diesel entered Greens Bayou from a cement facility, the U.

New Load Measurement Solution for Port of Dampier

Strainstall designs and delivers a load measurement solution for the world’s largest floating wharf at Port of Dampier.   Strainstall, part of James Fisher and Sons plc,

Energy

Idreco Delivers Dredger for Hydro-Dam in Congo

Idreco (International Dredger Constructions) of the Netherlands informs it has designed, built and installed its second dredger, an ISD 600 with a digging depth of 30 meters,

Offshore Wind Shift to Drive Vessel Services Cooperation

Evolving procurement processes for U.K. Round 3 offshore wind farms will require a greater number of work streams, personnel with new and differing skills, and

Damen Delivers First Twin Axe FCS for O&G

Damen Maaskant Shipyards Stellendam have a decade-long relationship with the family-run Groen Offshore, Guard & Support, having built seismic research vessels and

News

Idreco Delivers Dredger for Hydro-Dam in Congo

Idreco (International Dredger Constructions) of the Netherlands informs it has designed, built and installed its second dredger, an ISD 600 with a digging depth of 30 meters,

BAE Systems Awards Software Contract to SENER

The Spanish company SENER, Ingeniería y Sistemas S.A has closed a contract with U.K.-based BAE Systems PLC for the integration between FORAN CAD/CAM System and

Hawboldt Secures Cape Sharp Tidal Winch Deal

A third Nova Scotian company has secured a multimillion dollar contract with the Cape Sharp Tidal project, which has potential to be the first grid-connected tidal array in the world.

Offshore Energy

BSEE Updates Hurricane Reporting Requirements

BSEE is providing updated guidance for the current and future hurricane seasons through a Notice to Lessees (NTL) released July 27, 2015. NTL 2015-G02 clarifies

Offshore Wind Shift to Drive Vessel Services Cooperation

Evolving procurement processes for U.K. Round 3 offshore wind farms will require a greater number of work streams, personnel with new and differing skills, and

Damen Delivers First Twin Axe FCS for O&G

Damen Maaskant Shipyards Stellendam have a decade-long relationship with the family-run Groen Offshore, Guard & Support, having built seismic research vessels and

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Navigation Offshore Oil Pod Propulsion Salvage Ship Simulators Shipbuilding / Vessel Construction Sonar
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: 0.1722 sec (6 req/sec)