POLLUTION LIABILITY INSURANCE
If a ship is a tanker carrying a cargo of more than 2000 tons of persistent oil in bulk, then one has to make sure that they have a CLC ( International civil liability convention for oil pollution) certificate on board. The certificate is commonly known as oil pollution insurance or 'OPIC'. The certificate is issued by flag state. It is valid for a maximum period of 12 months. The period of validity is usually concurrent with the period of the insurance cover. If the insurer is P&I club, this will be normally from noon GMT on 20th february in one year to the same time and date in following year.
But US federal law requires vessels entering US navigable waters to carry a certificate of financial responsibility (COFR) as evidence of financial responsibility for oil pollution. It should be carried out by all ships of 300 GT and above.
Under CLC 1992 all these liabilities are insured by the clubs, although with a limit in respect of oil pollution claims which presently stand at US $ 300 million, each entered ship, each accident or occurrence.
The international convention on the establishment for an International fund for compensation for oil pollution damage, 1971 is known as Fund convention. It has a protocol adopted in 1992. Came in force in 1996. It has two purposes:-
1) To provide additional compensation to that given under the CLC to victim of pollution.
2) To provide some relief to the ship owner liability for pollution.
It requires the importers of oil to make payments into a pollution fund known as International oil pollution compensation fund (IOPC) from which relief payment can be made.
But US federal law requires vessels entering US navigable waters to carry a certificate of financial responsibility (COFR) as evidence of financial responsibility for oil pollution. It should be carried out by all ships of 300 GT and above.
Under CLC 1992 all these liabilities are insured by the clubs, although with a limit in respect of oil pollution claims which presently stand at US $ 300 million, each entered ship, each accident or occurrence.
The international convention on the establishment for an International fund for compensation for oil pollution damage, 1971 is known as Fund convention. It has a protocol adopted in 1992. Came in force in 1996. It has two purposes:-
1) To provide additional compensation to that given under the CLC to victim of pollution.
2) To provide some relief to the ship owner liability for pollution.
It requires the importers of oil to make payments into a pollution fund known as International oil pollution compensation fund (IOPC) from which relief payment can be made.
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