The 1992 Fund has commenced making payments of compensation in respect of the Trident Star incident, which occurred in August 2016, polluting the Malaysian Port of Tanjung Pelepas.
Since claims arising from this incident exceed the 1992 CLC limit applicable to the Trident Star of RM 27.1 million (USD 6.3 million), the 1992 Fund is liable to pay compensation. However, all payments are recovered from the shipowner’s insurer, the Shipowner’s Club, under the Small Tanker Oil Pollution Indemnification Agreement (STOPIA) 2006, a voluntary agreement between owners of small tankers (i.e. 29 548 GT or less) and their insurers (read more here).
Claims arising from this incident have been settled at USD 7.5 million and so far during 2020, the 1992 Fund has paid USD 561 695 in compensation. The first claims paid were related to the costs incurred in cleaning the hull of two tankers affected by the pollution, totalling USD 87,366. This was followed in July 2020 with a payment of USD 474,329.00 to a group of shipping line companies for costs included in clean-up and consequential economic losses relating to five container vessels.
The Shipowner’s Club is promptly reimbursing the 1992 Fund for the payments. This case demonstrates that the successful cooperation between the Club and the IOPC Funds is extremely beneficial in administering the agreements and regime efficiently.
Claims by five claimants in a group of shipping companies, totalling USD 6.6 million, remain outstanding and are being assessed by the Shipowners’ Club and the 1992 Fund.
Background information regarding the incident can be found under the incident section and the latest developments will be reported to the next session of the 1992 Fund Executive Committee in document IOPC/NOV20/3/9, which is due to be published in August.