International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage Explained

The International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage is a vital agreement that helps protect the environment and people affected by oil spills. The convention was adopted in 1992.

The convention created an international fund to compensate for oil pollution damage, which is essential for countries that cannot pay for the costs of cleaning up oil spills on their own. This fund provides financial assistance to affected countries.

The International Fund for Compensation for Oil Pollution Damage was established to help countries recover from oil spills, and it's managed by the International Maritime Organization (IMO). The fund is essential for countries with limited resources.

The convention requires countries to pay a contribution into the fund, which is used to compensate for oil pollution damage.

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This Convention is an advancement over the International Convention on Civil Liability for Oil Pollution Damage of 1969, creating an International Fund to compensate victims of oil pollution damage outside of the owners' legal obligations.

The International Fund is contributed to by professionals of the petroleum industry in each Member State and offers a significant amount of compensation, up to 82 million US dollars.

The Convention has undergone several amendments since its entry into force, with a Protocol in 1976 introducing Special Drawing Rights as a new unit of measure for calculating compensation.

This change allowed for more accurate and effective compensation calculations.

The Protocol of 1984 raised the ceiling of compensation, providing more protection for victims of oil spills.

The Protocol of 1992 introduced a new compensation fund, FUND 2, offering a higher amount of indemnification up to 256 million US dollars.

This increase in compensation was a significant improvement for those affected by oil pollution damage.

The amendments of 2000 and 2003 further revised the amount of compensation offered, reaching up to 291 million US dollars.

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Compensation is a crucial aspect of the International Convention. The Fund shall pay compensation to any person suffering pollution damage if such person has been unable to obtain full and adequate compensation under the terms of the 1992 Liability Convention.

The Fund shall incur no obligation if it proves that the pollution damage resulted from an act or omission done with the intent to cause damage by the person who suffered the damage or from the negligence of that person. However, there shall be no such exoneration of the Fund with regard to preventive measures.

Rights to compensation under Article 4 shall be extinguished unless an action is brought thereunder or a notification has been made within three years from the date when the damage occurred. In no case shall an action be brought after six years from the date of the incident which caused the damage.

Contributions to the Fund are also a vital part of this Convention. Annual contributions shall be made in respect of each Contracting State by any person who has received in total quantities exceeding 150,000 tons of contributing oil in the calendar year.

The aggregate amount of the annual contributions payable in respect of contributing oil received in a single Contracting State during a calendar year shall not exceed 27.5% of the total amount of annual contributions. If the contributions payable by persons in a given Contracting State are reduced, the contributions payable by persons in all other Contracting States shall be increased pro rata.

Compensation is a crucial aspect of the Fund's function under Article 2. The Fund shall pay compensation to any person suffering pollution damage if they've been unable to get full and adequate compensation under the 1992 Liability Convention.

Expenses reasonably incurred by the owner to prevent or minimize pollution damage are treated as pollution damage for the purposes of this Article. This means that if the owner takes proactive steps to mitigate the damage, those costs can be considered part of the compensation.

However, the Fund incurs no obligation if the pollution damage resulted from an act or omission done with the intent to cause damage by the person who suffered the damage. The Fund may also be exonerated if the shipowner has been exonerated under Article III, paragraph 3, of the 1992 Liability Convention.

Rights to compensation under Article 4 are extinguished unless an action is brought or a notification is made within three years from the date when the damage occurred.

The International Fund for Compensation for Oil Pollution Damage is established by the International Convention, which was adopted in 1969.

The Fund's purpose is to provide compensation to those who suffer oil pollution damage.

The Fund's resources are provided by a contribution of 4.5 million units of account, which is the equivalent of approximately $6.3 million.

The Fund's compensation limits are quite specific, and it's interesting to note that the total sum of compensation payable by the Fund and the amount of compensation actually paid under the 1992 Liability Convention for pollution damage cannot exceed 203,000,000 units of account.

In the event that the amount of established claims against the Fund exceeds this aggregate amount, the available amount will be distributed in such a manner that the proportion between any established claim and the amount of compensation actually recovered by the claimant under this Convention is the same for all claimants.

The Assembly of the Fund may decide to pay compensation even if the owner of the ship has not constituted a fund, but this would require the Fund to follow a specific procedure.

The Fund's good offices are available to assist Contracting States in securing personnel, material, and services necessary to prevent or mitigate pollution damage, and this can be done at the request of a Contracting State.

The Fund may also provide credit facilities to take preventive measures against pollution damage, but this would require the Fund to follow the conditions laid down in its Internal Regulations.

If this Protocol ceases to be in force, the Fund shall remain a legal person for the purposes of winding up.

The Assembly shall take all appropriate measures to complete the winding up of the Fund, which includes distributing any remaining assets among those who have contributed to the Fund in an equitable manner.

The distribution of assets will be done in a way that is fair and just, ensuring that everyone who contributed to the Fund receives a share.

According to Article 37, the Assembly is responsible for taking all necessary measures to complete the winding up process.

A key aspect of winding up the Fund is ensuring that any remaining assets are distributed fairly among contributors.

The International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage is a vital instrument for protecting the environment and ensuring compensation for those affected by oil spills.

This convention has been ratified by 15 countries, with the first ratifications occurring in 1975. The convention has undergone several amendments, including the Protocol to Amend the International Convention in 1992.

The convention provides for the compensation of state parties for damage caused by oil pollution and loss of income in the fishing and tourism industry. This is achieved through the attributed funds, which are meant to be easily accessible without lengthy legal procedures.

The 1992 Protocol is considered the instrument of reference for oil damage pollution and compensation, making it a crucial tool for states to follow in ensuring the well-being of their populations affected by oil spills.

The 1971 Convention and its 1992 Protocol provide a framework for state parties to compensate their populations affected by oil spills without lengthy legal procedures.

This means that individuals don't have to spend years fighting for compensation in court. The attributed funds not only compensate state parties for damage caused by pollution but also for loss of income in the fishing and tourism industry.

The Protocol of 1992 is considered the reference instrument for oil damage pollution and compensation, making it a crucial tool for protecting the environment and supporting those affected by oil spills.

The International Convention on Civil Liability for Oil Pollution Damage was signed in Brussels on November 29, 1969.

Two related treaties are the Protocol to Amend the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (FUND 2), signed in London on November 27, 1992, and the International Convention on Civil Liability for Oil Pollution Damage itself.

The ratifications of these treaties are as follows:

These treaties aim to provide a framework for compensation in the event of oil pollution damage.