Page 53 - claims information pack ebook_e

Guidelines for presenting claims in the fisheries, mariculture and fish processing sector

introduction

1. Introduction to the International Oil Pollution

Compensation Funds

What are the IOPC Funds? position in which he/she would have been

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

1.3 The aim of the 1992 Fund is to provide 1.6 The owner of the tanker from which the oil
compensation for losses resulting from a was spilled is responsible for paying for
pollution incident involving a tanker, so that the damage caused, usually through his
the claimant is returned to the same economic insurer or P&I Club. However, he can limit the