Lecture 14: International Fund for Oil Pollution Damage (1992)

LECTURE 14 INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION DAMAGE (FUND, 1992)  BACKGROUND AND INTRODUCTION Due to the transitionary nature of ocean and sea currents, the effects of oil spills are far-reaching. Even...

LECTURE 14 INTERNATIONAL CONVENTION ON THE ESTABLISHMENT OF AN INTERNATIONAL FUND FOR COMPENSATION FOR OIL POLLUTION DAMAGE (FUND, 1992)  BACKGROUND AND INTRODUCTION Due to the transitionary nature of ocean and sea currents, the effects of oil spills are far-reaching. Even regions remote from the spill may be affected. An International Fund for Compensation for Oil Pollution Damage Convention was established to address this issues on compensation. Established in 1992 and referred to as the Fund Convention or FUND92, a step forward in the payment of compensation and dues to parties affected by oil-related pollution and damage. It is an international maritime treaty drawn up in response to the initial 1969 CLC fund treaty and is administered by the International Maritime Organization (IMO).  ADOPTION AND EIF Adoption: 18 December 1971; Entry into force: 16 October 1978; Superseded by 1992 Protocol: Adoption: 27 November 1992; Entry into force: 30 May 1996 The 1992 Protocol established a separate, 1992 International Oil Pollution Compensation (IOPC) Fund, known as the 1992 Fund, which is managed in London by a Secretariat. ESTABLISHMENT OF CLC 1969 & FUND 1992 FUND CONVENTION CLC 1992 1992 Adopted – 29 Nov1969 Adopted – 18 Dec 1971 EIF – 19 June 1975 EIF – 16 Oct 1978 Replaced by Convention Replaced by Convention Protocol 1992 Protocol 1992 Adopted – 27 Nov 1992 Adopted – 27 Nov 1992 EIF – 30 May 1996 EIF – 30 May 1996  PURPOSE The purpose of the Fund Convention is to provide compensation for pollution damage to the extent that the protection afforded by the 1969 Civil Liability Convention is inadequate. Under the Fund Convention, victims of oil pollution damage may be compensated beyond the level of the shipowner's liability.  EXEMPTIONS TO SHIPOWNERS First point may not be difficult to prove, other two points are more difficult to prove. This means that ship owners have hardly any exception to the liability. In almost all the cases of oil pollution, ship  THE IOPC FUNDS AND IMO Although the Funds were established under Conventions adopted under the auspices of IMO, they are completely independent legal entities. The IOPC Funds are not United Nations (UN) agencies and are not part of the UN system. They are intergovernmental organizations outside the UN, but follow procedures which are similar to those of the UN. Only States can become Members of the IOPC Funds. To become a member of the Fund, a State must accede to the 1992 Civil Liability Convention and to the 1992 Fund Convention by depositing a formal instrument of accession with the Secretary- General of IMO. These Conventions should be incorporated into  SUPPLEMENTARY FUND 1992 The aim of the established this fund is to supplement the compensation available under the 1992 Civil Liability and Fund Conventions with an additional, The Third Tier of compensation (Supplementary Fund) if those 2 previous funds is not sufficient. The Protocol is optional and participation is open to all States Parties to the 1992 Fund Convention. The total amount of compensation payable for any one incident will be limited to a combined total of 750 million Special Drawing Rights (SDR) including the amount of compensation paid under the existing CLC/Fund Convention. The supplementary fund will apply to damage in the territory, including the territorial sea, of a Contracting State and in the exclusive economic zone of a Contracting State.