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The entry into force on 3 March 2005 of the 2003 Protocol establishing an
International Oil Pollution Compensation Supplementary Fund will provide for
increased levels of compensation for victims of oil pollution.
The Fund will supplement the compensation available under the 1992 Civil
Liability Convention (CLC) and the International Convention on the
Establishment of an International Fund for Compensation for Oil Pollution
Damage (FUND), with an additional, third-tier of compensation. Participation
is optional and is open to all States which are 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)
(just over US$1,145 million) including the amount of compensation paid under
the existing 1992 CLC/Fund Convention.
With the entry into force of the 2003 Protocol, IMO has substantially
enhanced the compensation available under the 1992 Convention.
It is expected that the increased compensation should put an end to the
practice of pro-rating of payment of claims, which, although it has been
unavoidable, has led to criticisms of the 1992 Convention.
The 2003 Protocol will apply to damage in the territory, including the
territorial sea and the Exclusive Economic Zone of a Contracting State.
Annual contributions to the Fund will be made in respect of each Contracting
State by any person who, in any calendar year, has received total quantities
of oil exceeding 150,000 tons.
However, for the purposes of the 2003 Protocol, there is a minimum aggregate
receipt of 1,000,000 tons of contributing oil in each Contracting State.
The 1969 International Convention on Civil Liability for Oil Pollution
Damage (CLC), and the 1971 International Convention on the Establishment of
an International Fund for Compensation for Oil Pollution Damage, (the Fund
Convention, which established the IOPC Fund), ensure that compensation is
available for victims of oil pollution from ships. |
