3 Tiers of oil pollution,compensation and source of funding
The international regime of compensation for damage caused by oil pollution is currently based on two international conventions and they are:- 1) THE 1992 CIVIL LIABILITY CONVENTION (CLC) 2) THE 1992 FUND CONVENTION Normally the convention is applied to tankers carrying persistent oil as cargo but under certain circumstances the conventions are also applied to spills from unladen tankers.If oil is spilled from any tanker there are 3 tiers of oil pollution damage compensation. TIER 1 The CLC provides first tier of compensation which is paid by the owner of a ship which causes pollution damage. Under 1992 CLC the ship owner has strict liability for any pollution damage caused by the oil ,i.e. the owner is liable even if there was no fault on the part of the ship or its crew.However, the ship owner can limit his financial liability to an amount determined by the tonnage of the ship. This amount is guaranteed by the ship owner's liability insurer.Tankers carrying more than 2000