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GENERAL
Q: What do the Funds do?
A: The IOPC Funds (1971 Fund and 1992 Fund)
help compensate those who have suffered financial loss as a result of
an oil spill from a tanker.
Q: Why are there two Funds?
A: The compensation limits
of the 1971 Fund had become too low to cover the cost of oil
spills. The 1971 Fund Convention (which created the 1971 Fund)
therefore had to be amended to get higher compensation limits.
Under international law, States have the right to choose to
accede to Conventions and amendments but are not obliged to
do so. Therefore States which were Members of the 1971 Fund
had to be given the right to choose whether to accede to a
new 1992 Fund Convention. It was not legally possible to have
one organisation with two groups of Members. Due to a number
of denunciations of the 1971 Fund Convention, this Convention
ceased to be in force on 24 May 2002, but the 1971 Fund will
continue to deal with a number of incidents which occurred
in 1971 Fund Member States before that date.
Q: What is the main difference between the
1971 and 1992 Funds?
A: The main difference is that the amount of
compensation available from the 1992 Fund is much higher than from the
1971 Fund. Further details can be found in the General Explanatory Note.
Q: What governs the running of the 1992 Fund?
A: The 1992 Fund Convention. In
addition, the Assembly of the 1992 Fund (with representatives of all
1992 Fund Member States) has adopted Internal and Financial
Regulations.
Q: ... And the 1971 Fund?
A: The 1971 Fund Convention. Again, the Assembly of
the 1971 Fund (with representatives of all 1971 Fund Member States)
adopted Internal and Financial Regulations. Since the 1971 Fund no longer has any Member States, the function of the Assembly is being carried out by an Administrative Council, composed of all former Member States.
Q: When do the Assemblies meet?
A: Normally once a year, in October.
Information on forthcoming meetings can be
found in News & Events.
Q: Where are the Funds' offices?
A: The joint Secretariat
of the 1992 and 1971 Funds is based in London. Click here
for a detailed map
of how to find us.IOPC Funds
Portland House, Stag Place, London, SW1E 5PN United Kingdom
Q: Are there offices elsewhere in the world?
A: Occasionally a local claims handling office is opened near
to where a major oil spill
has occurred so claims can be processed more easily. Local
offices are currently operating in France and Spain.
Q: How big is the Secretariat?
A: There are 27 staff in the Secretariat at
present. The Secretariat is divided into three departments: the
Claims Department, the External Relations and Conference Department
and the Finance and Administration
Department.
Q: Who is head of the Secretariat?
A: The Secretariat is headed by a Director, Mr
Måns Jacobsson, who is Swedish.
Q: What is the relationship between the IOPC Funds and
IMO?
A: The 1971 Fund and 1992 Fund are completely
independent from the International Maritime Organization (IMO).
Although the Funds were established under Conventions adopted within
IMO, they are independent legal entities.
Q: How do the IOPC Funds fit into the United Nations
system?
A: Unlike IMO, the
IOPC Funds are not United Nations (UN) agencies and are not part of
the UN system. They are intergovernmental organisations outside
the UN, but follow procedures which are similar to those of the
UN.
Q: What are the official languages of the IOPC Funds?
A: English and French are the official languages of the 1971 Fund. English, French and Spanish are the official languages of the 1992 Fund.
Q: What publications do the Funds produce?
A: Please see the Publications page.
Q: How can I obtain one of these
publications?
A: Let us know which publications you would
like, and give us your name and address, and we will post them to
you.
MEMBERSHIP
Q: Who can join the IOPC Funds?
A: Only States can become Members. States which have not already done so should consider becoming Members of the 1992 Fund, since the 1971 Fund Convention ceased to be in force on 24 May 2002.
Q: How does a State become a Member of the 1992 Fund?
A: A State must accede to the 1992 Civil Liability Convention and to the 1992 Fund Convention by depositing a formal instrument of accession with the Secretary-General of the International Maritime Organization (IMO). These Conventions should be incorporated into the national law of the State concerned.
Q: How long does it take to become a Member of the
1992 Fund?
A: A State will become a Member of the 1992
Fund twelve months after the instrument of accession to the 1992 Fund
Convention is deposited with IMO.
Q: What are the advantages of joining the 1992 Fund?
A: If a pollution incident
occurs involving an oil tanker, compensation of approximately
£162 million (US$311 million) is available to governments
or other authorities which have incurred costs for clean-up
operations or measures to prevent or minimise pollution damage
and to private bodies or individuals who have suffered damage
within a 1992 Fund Member State as a result of the pollution.
The flag of the tanker and the ownership of the oil do not
affect the right to compensation. Further information can
be found in the General Explanatory
Note.
Q: How many Members does the 1992 Fund have?
A: The latest figures are given in the
Facts & Figures page of this website.
The number of 1992 Fund Member States continues to increase. Since the 1971 Fund Convention is no longer in force, there are no longer any 1971 Fund Member States.
COMPENSATION
Q: How much compensation can the IOPC Funds pay?
A: The maximum payable
by the 1992 Fund for any incident occurring on or after 1
November 2003 is 203 million Special Drawing Rights (SDR)
(US$311 million). The maximum payable by the 1992 Fund for
any incident occurring before 1 November 2003 is 135 million
SDR (US$207 million). The maximum payable by the 1971 Fund
for an incident is only 60 million SDR (US$92 million). These
amounts are less the compensation paid by the shipowner.
As of March 2005, additional compensation will be available
for victims in States which are Members of the 1992 Fund and
join the International Oil Pollution Compensation Supplementary
Fund . The maximum payable by the Supplementary Fund for
one incident will be 750 million SDR (US$1 148 million),
less the compensation paid by the shipowner and the 1992 Fund.
Q: How much does the shipowner pay?
A: This depends on the
size of the tanker. Under the 1992 regime, for incidents occurring
on or after 1 November 2003, the maximum to be paid by the
shipowner for a small ship is 4.5 million SDR (US$7 million).
The maximum for a large ship is 89.8 million SDR (US$137
million). For incidents occurring before 1 November 2003 under
the 1992 regime, the maximum to be paid by the shipowner for
a small ship is 3 million SDR (US$5 million) and the maximum
for a large ship is 59.7 million SDR (US$91 million). The
maximum to be paid by the shipowner under the 1969/71 regime
is much lower. Full details are given on the compensation
limits/conversion of SDR rates page.
Q: What is an SDR?
A: The SDR (Special Drawing Right) is a currency unit created by the
International Monetary Fund.
Q: How much is an SDR?
A: Conversions are given daily in the Financial Times newspaper or
on websites such as the International Monetary Fund. Recent conversions appear on the
compensation
limits/conversion of SDR rates page of this
website.
Q: Who can claim from the IOPC Funds?
A: Anyone who has suffered pollution damage
(including clean-up costs) in a Member State, for example individuals,
companies, local authorities or States.
Q: How should a claim be presented?
A: This is dealt with in detail in the
Claims Manuals.
Q: What claims are covered?
A: The 1992 Fund pays for what is defined as 'pollution damage'. This covers the cost of clean-up operations and property damage, as well as claims for consequential loss and 'pure economic loss'. For example, fishermen whose nets have become polluted are entitled to compensation for cleaning or replacing nets, and compensation for loss of income while they are unable to fish. Hotel owners at seaside resorts are entitled to compensation for loss of tourism income resulting from an oil spill. Compensation is also paid for measures taken to prevent or minimise pollution. More guidance is given in the
Claims Manuals.
Q: Does the 1992 Fund pay for environmental damage?
A: Compensation for environmental damage (other than economic loss resulting from impairment of the environment) is restricted to costs for reasonable measures to reinstate the contaminated environment. Claims for damage to the ecosystem are not admissible.
Q: What is the cost of an average oil spill?
A: This is an impossible question to
answer. The cost will depend on many factors, such as the
quantity and type of oil spilled, the weather conditions at the time
of the spill and the area affected. Large spills a long way from
shore can cost very little, but relatively small spills in a coastal
zone supporting fishing and tourism can be very costly. Amounts
of compensation paid by the 1971 Fund and 1992 Fund in the past are
given in the last Annexes of the
Annual Report.
Q: Does the shipowner have insurance?
A: The shipowner has to have insurance
if the tanker is carrying more than 2000 tonnes of oil in bulk as
cargo.
Q: Who provides the insurance?
A: The shipowner's insurance
is normally provided by a protection and indemnity association,
known as a P&I Club. Normally it is the P&I Club which
in reality pays any compensation for which the shipowner is
liable.
FINANCE
Q: How are the IOPC Funds financed?
A: The 1971 and 1992 Funds levy contributions from entities in Member States which receive more than 150 000 tonnes of crude or heavy fuel oil ('contributing oil') in a year after sea transport. Governments provide the Secretariat with reports of oil quantities received, but invoices are sent directly to each contributor.
Q: Does that mean that States do not pay?
A: Normally, States do not pay any
contributions. However a State can choose to pay the
contributions instead of the individual receivers if it wishes, but
only a few States have chosen to do this.
Q: Do oil exporters pay contributions?
A: No. In order to create a system which
would not be too complicated to operate, it was decided to count oil
quantities for contribution purposes only when they were received at a
port after sea transport.
Q: Does a company that receives oil temporarily in a storage
facility for others have to pay?
A: Yes. It is the first physical
receiver of the oil in a Member State who is liable to pay
contributions, provided that the oil has previously been transported
by sea. It does not matter whether the oil is received on behalf
of another company.
Q: If nobody in a Member State receives
oil, what happens?
A: If there are no entities in a State that
receive more than 150 000 tonnes of contributing oil in a year, the
State will have financial protection for oil spills at no cost at
all.
Q: Is there a joining fee?
A: There is no joining fee for the 1992
Fund.
Q: How much does it cost to be a Member of
the 1992 Fund?
A: This is another question that is impossible
to answer! The level of contributions varies each year,
depending on the amounts of compensation which the 1992 Fund has to
pay. That depends on the incidents which occur and the amounts
to be paid in compensation. The contributions paid in recent
years are given in the General Explanatory
Note.
Q: How are contributions calculated?
A: The Fund Secretariat estimates the amount required for the following year for compensation payments and administrative costs. The decision on the total amount required is taken by the Assembly. This amount is divided by the total quantity of contributing oil received in the Member States. This gives an amount per tonne of oil received. The quantity of oil received by each contributor is multiplied by the amount per tonne to get the amount in pounds sterling which has to be paid by that contributor.
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