COMPENSATION FOR OIL POLLUTION DAMAGE CAUSED BY OIL-SPILLS FROM SHIPS AND THE INTERNATIONAL OIL POLLUTION COMPENSATION FUND

Liability and compensation for pollution damage caused by oil spills from laden tankers is governed by two international conventions: the 1969 Civil Liability Convention and the 1971 Fund Convention, The Civil Liability Convention established a system of strict liability for tanker owners and introduced compulsory liability insurance, The Fund Convention created a system of supplementary compensation administered by an intergovernmental organization, the International Oil Pollution Compensation Fund (IOPC Fund), which at present has 56 member states (August 1993), The IOPC Fund pays compensation to victims of oil pollution in member states when the compensation from the shipowner and his insurer is insufficient, Over the years (up to August 1993), the IOPC Fund has been involved in 66 incidents and has paid US$92 million to victims, Only three of these incidents have been taken to court, whereas in all other cases claims have been settled out of court. The IOPC Fund has developed a policy on the admissibility of claims covering clean-up costs, measures to prevent pollution, damage to property and economic loss suffered by fishermen, hotel-owners and others who depend directly for their livelihood on sea-related activities.