Page 16 - claims information pack ebook_e

1992 Fund Claims Manual October 2016 Edition

that is not a Party to the Conventions in marketing campaigns, which are intended
order to prevent or reduce pollution damage to prevent or reduce economic losses by
within the territorial sea or EEZ of a State countering the negative effects which can
Party, the cost of the response would in result from a major pollution incident.
principle qualify for compensation. Expenses
for preventive measures are recoverable Use of economic models
even if no spill of oil occurs, provided that 1.4.11 Where insufficient documentary evidence
there was a grave and imminent threat of is provided to support a claim and it is
pollution damage. unjustified to request, or expect, additional data,
compensation may be paid on the basis of an
1.4.6 Compensation is also payable for reasonable
costs associated with the capture, cleaning estimate of losses calculated from a recognised
and rehabilitation of wildlife, in particular birds, and reliable economic model. Any such
mammals and reptiles. economic model must be derived from actual
data closely associated with the loss claimed
Property damage and taken from the relevant sector or industry.
14 1.4.7 Compensation is payable for reasonable costs The model would be carefully examined by the
of cleaning, repairing or replacing property that Fund and its experts to ensure that the data
used, the assumptions made and the method
has been contaminated by oil.
of calculation were valid.
Consequential loss Environmental damage
1.4.8 Compensation is payable for loss of 1.4.12 Compensation is payable for the costs
earnings suffered by the owners of property of reasonable reinstatement measures
contaminated by oil as a result of a spill aimed at accelerating natural recovery
(consequential loss). One example of of environmental damage. Contributions
consequential loss is loss of income by may be made to the costs of post-spill
fishermen as a result of their nets becoming studies provided that they relate to damage
oiled, which prevents them from fishing until which falls within the definition of pollution
their nets are either cleaned or replaced. damage under the Conventions, including

Pure economic loss studies to establish the nature and extent
of environmental damage caused by an
1.4.9 Under certain circumstances compensation oil spill and to determine whether or not
is also payable for loss of earnings caused reinstatement measures are necessary
by oil pollution suffered by persons whose and feasible.
property has not been polluted (pure
economic loss). For example, a fisherman 1.4.13 Compensation is not paid in respect of
whose nets have not been contaminated claims for environmental damage based
may nevertheless be prevented from fishing on an abstract quantification calculated in
because the area of the sea where he accordance with theoretical models. Nor is
normally fishes is polluted and he cannot compensation paid for damages of a punitive
fish elsewhere. Similarly, an owner of a nature on the basis of the degree of fault of
hotel or a restaurant located close to a the wrong-doer.
contaminated public beach may suffer
losses because the number of guests Use of advisers
falls during the period of the pollution.
1.4.14 Claimants may wish to use advisers to assist
1.4.10 Compensation may also be payable for the them in presenting claims for compensation.
costs of reasonable measures, such as Compensation is paid for reasonable costs