Page 109 - claims information pack ebook_e

Guidelines for presenting claims for clean up and preventive measures

introduction

1. Introduction to the International Oil Pollution

Compensation Funds

What are the IOPC Funds? What does the 1992 Fund do?

1.1 The International Oil Pollution 1.3 The aim of the 1992 Fund is to provide
Compensation Funds (IOPC Funds) are two compensation for losses resulting from
intergovernmental organisations (the 1992 a pollution incident involving a tanker, so
Fund and the Supplementary Fund) which that the claimant is returned to the same
4 provide compensation for oil pollution damage economic position in which he/she would
resulting from spills of persistent oil from have been if the oil spill had not happened.
tankers. The 1971 Fund was the original Ideally, the compensation should exactly
Fund but ceased providing compensation balance the loss.
for incidents occurring after May 2002 How is money raised to pay compensation?
and has now been dissolved.
1.4 The owner of a tanker is usually insured with
1.2 The International Oil Pollution Compensation what is known as a Protection and Indemnity
Fund 1992 (which, in this booklet, is called Association, or P&I Club. The P&I Clubs
‘the 1992 Fund’) is the current Fund and is insure the majority of tankers operating in
composed of States which have agreed to international trade. A smaller number of
two Conventions (the 1992 Civil Liability tankers, often operating solely in domestic
Convention (1992 CLC) and the 1992 Fund markets, are insured by commercial insurers.
Convention) which cover the payment of The tanker owner is generally covered
compensation to people, businesses or against damages caused by oil pollution
organisations that suffer losses due to through this insurance up to a certain
pollution caused by persistent oil (not amount of money. It is this money that
gasoline or other light oils) from tankers. is used initially to pay compensation after
The Supplementary Fund provides an an oil spill.
additional tier of compensation to victims 1.5 When the amount available from the tanker
in States which are Party to the
owner’s insurance is not enough to cover
Supplementary Fund Protocol. More
the total cost of the pollution incident,
information on the Conventions can be compensation is paid by the 1992 Fund.
found in the 1992 Fund Claims Manual The 1992 Fund is financed mainly by oil
and on the IOPC Funds’ website. companies in Member States, according to
the quantity of oil transported by sea that
they receive. All companies that receive
more than 150 000 tonnes of oil by sea in
any year must contribute to the 1992 Fund.