Page 15 - claims information pack ebook_e

Section 1: How does the compensation regime work?

available under the two 1992 Conventions, the and kerosene, is not compensated under the
compensation paid to each claimant will be Conventions. Such oils tend to evaporate
reduced proportionately. When there is a risk quickly when spilled and do not normally
that this situation will arise, the 1992 Fund require cleaning up.
may have to restrict compensation payments
to ensure that all claimants are given equal 1.4 WHAT TYPES OF
treatment. The payment level may increase at DAMAGE ARE COVERED?
a later stage if the uncertainty about the total
amount of the established claims is reduced. 1.4.1 The 1992 Conventions cover pollution
damage, which is defined as:
Under the Supplementary Fund Protocol
– the Supplementary Fund pays ‘loss or damage caused outside the ship by
contamination resulting from the escape or
1.2.4 The Supplementary Fund makes additional discharge of oil from the ship, wherever such
compensation available, so that the total escape or discharge may occur, provided
amount of compensation payable for any that compensation for impairment of the
one incident for damage in a State that is environment other than loss of profit from 13
a Member of that Fund is 750 million SDR such impairment shall be limited to costs
(US$1 047 million), including the amount of reasonable measures of reinstatement
payable under the 1992 Civil Liability and Fund actually undertaken or to be undertaken.’
Conventions. One important benefit of the
Supplementary Fund is that, even in the most 1.4.2 Pollution damage includes preventive
serious pollution incidents, there should rarely measures, which are defined in the 1992
be any need to reduce compensation payments Conventions as:
proportionately for pollution damage in States
that are Members of that Fund: it should be ‘any reasonable measures taken by any
possible from the outset for claimants to receive person after an incident has occurred to
100% of their proven compensation claim. prevent or minimize pollution damage.’
1.3 WHAT TYPES OF 1.4.3 The 1992 Civil Liability and Fund Conventions
INCIDENT ARE COVERED? and the Supplementary Fund Protocol apply
to pollution damage caused in the territory,
territorial sea and exclusive economic zone
1.3.1 The 1992 Civil Liability and Fund Conventions (EEZ), or equivalent area of States that are
cover incidents in which persistent mineral oil Party to these treaties. Lists of these States
is spilled from a sea-going vessel constructed may be obtained directly from the 1992 Fund
or adapted to carry oil in bulk as cargo or from its website (www.iopcfunds.org).
(normally a tanker). The 1992 Conventions
cover not only spills of cargo and bunker oil 1.4.4 The main types of pollution damage covered
(the vessel’s own fuel) from laden tankers, but are described below.
also in certain circumstances spills of bunker
oil from unladen tankers. Clean-up and preventive measures

1.3.2 Examples of persistent mineral oil are crude 1.4.5 Compensation is payable for the cost of
oil, fuel oil, heavy diesel oil and lubricating reasonable clean-up measures and other
oil. Such oils are usually slow to dissipate measures taken to prevent or minimise
naturally when spilled into the sea and are pollution damage in a State Party, wherever
therefore likely to spread and require cleaning these measures are taken. For example, if a
up. Damage caused by spills of non-persistent response were undertaken on the high seas
mineral oil, such as gasoline, light diesel oil or within the territorial waters of a State ›