BALTIC SEAENVIRONMENT PROCEEDINGS No. 59 - Helcom

ABSTRACT:
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 establishes a system of strict liability for tanker owners and introduces
compulsory liability insurance. The Fund Convention creates a system of supplementary
compensation administered by an intergovernmental organisation, the International Oil Pollution
Compensation Fund (IOPC Fund), which at present has 56 Member States. The IOPC Fund pays
compensation to victims of oil pollution in Member States when the compensation from the
shipowner and the insurer is insufficient.
The IOPC Fund co-operates closely with the P & I Clubs, employing experienced experts. Over the
years, 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, preventive measures, damage to property and economic loss.
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