Compulsory civil liability insurance, financial security: An integral component of compensation for ship-source oil pollution damage

2021 ◽  
Vol 33 (2) ◽  
pp. 435-441
Author(s):  
Pham Van Tan
Keyword(s):  
Large Scale ◽  
Oil Spills ◽  
Oil Pollution ◽  
Civil Liability ◽  
Economic Loss ◽  
Liability Insurance ◽  
Financial Security ◽  
Pollution Damage ◽  
Significant Harm ◽  
Oil Tankers

Oil pollution damage caused by oil spills at sea generally occurs on a large scale across numerous regions and countries, causing significant harm to marine ecosystems as well as worldwide economic loss. The costs are so severe in many instances that the owner of the ship responsible for the pollution cannot afford to pay compensation to those who have suffered loss. As a consequence, the need to cover oil pollution damages has given rise to compulsory liability insurance, which provides a financial guarantee against the costs of oil spills. Compulsory civil liability insurance has therefore become an indispensable part of the liability regime for owners of oil tankers and bunkers.

INTERNATIONAL REGIME FOR COMPENSATION FOR POLLUTION FROM TANKERS

1997 ◽  
Vol 1997 (1) ◽  
pp. 69-71
Author(s):  
Mans Jacobsson
Keyword(s):  
Oil Spills ◽  
Oil Pollution ◽  
Civil Liability ◽  
The United States ◽  
Compensation System ◽  
Intergovernmental Organization ◽  
Pollution Damage ◽  
Set Up ◽  
International Conventions ◽  
New System

ABSTRACT Compensation for oil spills from laden tankers has so far been governed by two international conventions adopted under the auspices of the International Maritime Organization: the 1969 Civil Liability Convention and the 1971 Fund Convention. Ninety-six states are parties to the 1969 Civil Liability Convention, and 70 states are parties to the 1971 Fund Convention. The United States is not party to either of these conventions. In 1992, two protocols were adopted amending the 1969 Civil Liability Convention and the 1971 Fund Convention. The conventions as amended by the 1992 protocols (the 1992 conventions), which entered into force on May 30, 1996, give better economic protection to victims of oil pollution damage caused by oil spills from tankers than the conventions in their original versions. Under the 1992 conventions, the available compensation amounts per incident (including the sum actually paid by the shipowner and his or her insurer) have been increased from US$87 million to approximately US$196 million. The 1971 Fund Convention set up an intergovernmental organization, the 1971 Fund, to administer the compensation system. The new system of compensation established under the 1992 Fund Convention is administered by a separate legal entity: the 1992 Fund. The two funds share a secretariat.

The best way to the protection of the marine environment from oil spills impacts is the strengthening of available oil spill liability and compensation regimes or the funding of oil spill preparedness and strengthening of oil spill combat capabilities

2017 ◽  
Vol 2017 (1) ◽  
pp. 2017108
Author(s):  
A J M Gunasekara
Keyword(s):  
Oil Spill ◽  
Marine Environment ◽  
Oil Spills ◽  
Oil Pollution ◽  
Marine Pollution ◽  
Civil Liability ◽  
Economic Loss ◽  
The Past ◽  
Funding Mechanism ◽  
Coastal And Marine Environment

The total volume of oil spilled and the number of spills has declined significantly over the past forty years. However, oil spills are no longer considered as an unavoidable. The ship source oil pollution still remains a potentially important risk to the local economies and the marine environment which can cause major economic loss and severe damages to the coastal and marine environment. The international regulatory framework to deal with liability and compensation in the event of ship source oil pollution has evolved over the past three decades. The available international legal regime for oil pollution liability and compensation is playing a great role in governing a discharge of oil into the sea by ensuring liability for polluters and compensation for victims of pollution. Despite the fact that the total cost of the oil spill cannot be compensated through the available international civil liability regime and entire damages caused to the marine environment cannot be compensated or recovered. This paper examined the application and limitations of available liability and compensation mechanism for the protection marine pollution and compare the benefit of the establishment of a funding mechanism for the strengthening of the level of oil spill preparedness and the civil liability regime for the protection of the coastal and marine environment. In addition, this paper reviews the funding mechanism adopted by the countries to the strengthening the level of oil spill preparedness taken into account the polluter pays principle without a putting extra burden for the general taxpayers. The establishment of a system for the funding of oil spill preparedness using the polluter pay principle has immensely helped to improve the oil spill response capabilities and protection of the marine environment of coastal states which adopted a unique funding mechanism by applying the polluter pay principle. This paper recommends the among other thing review the available compensation and liability regime for the protection of the marine environment and recommend to adopt and apply a uniform funding mechanism for the strengthening of the level of oil spill preparedness taken into account the polluter pay principle for the protection of the marine environment and improve the status quo.

scholarly journals THE NOTION OF “POLLUTION DAMAGE,” WITH PARTICULAR REGARD TO DAMAGE TO THE MARINE ENVIRONMENT

1987 ◽  
Vol 1987 (1) ◽  
pp. 555-557
Author(s):  
Måns Jacobsson
Keyword(s):  
Marine Environment ◽  
Oil Pollution ◽  
Civil Liability ◽  
Economic Loss ◽  
Economic Damage ◽  
Pure Economic Loss ◽  
Pollution Damage ◽  
Definition Of ◽  
International Conventions ◽  
The Impact

ABSTRACT Oil spill incidents may cause damage of several different types: damage to property, consequential loss, pure economic loss, and damage to the environment. The last type presents the greatest problems in connection with liability and compensation, because it is not easily assessed in monetary terms. This paper focuses on the problems relating to non-economic damage to the marine environment and economic loss as a consequence of damage to the environment. Some leading court cases are used to illustrate some of the problems. The definition of “pollution damage” in the international conventions, i.e., the 1969 Civil Liability Convention and the 1971 Fund Convention, is discussed. The position taken by the International Oil Pollution Compensation Fund in respect to claims for non-economic damage to the environment as well as claims for pure economic loss is described. The impact the new definition of this notion in the 1984 protocol to the Civil Liability Convention would have on the law of contracting states is examined.

OIL SPILL LIABILITY AND COMPENSATION

1979 ◽  
Vol 1979 (1) ◽  
pp. 7-10
Author(s):  
Christopher J. Carven
Keyword(s):  
Oil Spill ◽  
Oil Spills ◽  
Oil Pollution ◽  
Civil Liability ◽  
International Regimes ◽  
Pollution Damage ◽  
Legal Regimes ◽  
Key Features

ABSTRACT Before the Torrey Canyon incident in 1967, no adequate national or international legal regimes existed to compensate victims of oil pollution damage or to enable governments to recover costs incurred in cleaning up oil spills. But, as a result of this major pollution incident, many national and four major international regimes were developed to make certain that victims of oil spills were compensated for their losses. This article discusses two voluntary schemes, TOVALOP and CRISTAL, and two Intergovernmental Maritime Consultative Organization conventions—the Civil Liability Convention and the Fund Convention. For comparative purposes, it also covers the key features of proposed U.S. legislation generally referred to as “Superfund.”

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