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 tonnes of persistent oil as cargo are required to maintain insurance to cover their liability.
   A certificate confirming that such cover is in place must also be issued by the appropriate authority in a contracting state.

TIER 2
Second tier of compensation is provided by the 1992 FUND convention. This convention establishes an International oil pollution compensation fund 1992 to provide compensation for victims who are unable to obtain full compensation under CLC. It is financed by contributions levied on any entity or person who has received more than 150,000 tonnes of persistent oil after sea transport per calendar year in countries that are parties to 1992 FUND CONVENTION.This fund is limited to provide 203 million SDR for any one incident.

TIER 3
The third tier of compensation is provided by the protocol of 2003 to the 1992 FUND convention (the supplementary fund protocol). It establishes the International oil pollution compensation supplementary fund to provide compensation for victims who do not obtain full compensation under above two tiers. The supplementary fund is financed in same way as the 1992 Fund Convention. It limits the compensation to 750 million SDR.

Comments

Post a Comment

Popular posts from this blog

CRITICAL EQUIPMENT AND OPERATION UNDER ISM CODE.

-
Critical equipments are equipments whose failure will lead to a potential hazardous situation or an accident, thereby causing injury to personnel or loss of life or damage to marine environment or property. This causes deviation or failure of the ISM objective 1.2.2 of ISM code. PROVISION IN ISM :- Element 10.3 of ISM code states----      The company should establish procedures in its safety management system to identify equipment and technical system, the sudden operational failure of which may result in hazardous situation. The SMS should provide for specific measures aimed at promoting the reliability of such equipment or systems. These measures should include the regular testing of standby arrangement or equipment or technical systems that are not in continuous use.      Hence SMS must have with respect to the critical equipment have procedures:- 1) To identify them 2) To ensure their test and functional reliability 3) To establish and use the alternative arrangements on
Read more

Various codes of PSC inspection and how to present to PSCO in case IOPP equipment is not working

-
Following are the various codes which are used to represent Action to be taken by vessel against the deficiency reported:- Deficiency Action Codes 10 deficiency rectified 15 rectify deficiency at next port 16 rectify deficiency within 14 days 17 rectify deficiency before departure 18 rectify deficiency within 3 months  30 detainable deficiency 99 other (specify) Note: For ISM deficiencies, only code 10, 18 and 30 can be used. Restrictions on Updating Codes Both codes 15 and 16 can only be updated to code 10. Code 17 can only be updated to code 10, 15, 16 and 99. Code 18 can only be updated to code 10. Code 30 can only be updated to: - code 10 or 18 (ISM def.) - code 10 or 99 (non - ISM def.) Code 18 can only be updated to code 10. We will discuss one case where 15 ppm equipment has started malfunctioning just before the arrival of the port. After investigating it was found that the  coalescer filter has become very dirty and because of this th
Read more

CLEAR GROUND FOR DETAILED INSPECTION DURING PSC INSPECTION

-
CLEAR GROUNDS:- Evidence that the ship, its equipment or its crew does not correspond substantially with requirement of relevant convention or that the master or crew members are not familiar with essential shipboard procedures relating to the safety of ship or prevention of pollution.     Clear grounds to conduct a more detailed inspection include:- 1) The absence of principal equipment or arrangements required by convention :- e.g. MARPOL annex 1 requires that ship above 400 GRT and above must have an OWS with automatically stopping device, if effluent exceeds 15 ppm. Absence of this principal equipment will lead to detention. 2) Evidence from a review of the ship's certificate that it is clearly invalid: - e.g. Safety equipment certificate found invalid since no renewal survey was carried out. 3) Evidence that the ship's logs, manuals or other required documentation are not on board, are not maintained or falsely maintained:- e.g. ORB part 1 not present on board or in
Read more