This Convention shall apply exclusively to pollution damage triggered on the territory which includes the territorial sea of a Contracting State and to preventive measures taken to avert or reduce such damage. For a description of the functioning of these agreements see: The International Regime for Compensation for Oil Pollution Harm, Explanatory note prepared by the Secretariat of the International Oil Pollution Compensation Funds. The Canada Shipping Act is amended immediately after Canada accedes to the 1992 CLC and the 1992 IOPC Fund. After midnight on 15 May 1998 just before a ship calls at a port in a state celebration to the 1969 CLC it will will need to apply for a certificate from the ship registry of that state.
As quickly as this Convention comes into force, the text shall be transmitted by the Secretary-Common to the Secretariat of the United Nations for registration and publication in accordance with Report 102 of the Charter of the United Nations. They will require to receive a certificate covering 1969 CLC liabilities from another supply in order to be permitted to enter the waters of States parties to the 1969 CLC.
Payments of compensation and the administrative expenses of the 1971 IOPC Fund were financed by contributions levied on companies in Fund Convention nations that received crude oil and heavy fuel oil soon after sea transport. The tanker owner is commonly entitled to limit his liability to an amount which is linked to the tonnage of the tanker causing the pollution.
For ships carrying far more than 2 000 tonnes of oil as cargo in bulk, the shipowner is obliged to maintain insurance coverage to cover his liability beneath the 1992 CLC, and claimants have a correct of direct action against the insurer. An HNS Fund (which will most most likely be administered by the secretariat of the 1992 IOPC Fund) offers compensation up to a total of SDR 250 million (US$ 385 million), inclusive of shipowner liability but irrespective of ship size.
Except as supplied in paragraph 3, the provisions of this Convention shall not apply to warships, naval auxiliary or other ships owned or operated by a State and used, for the time being, only on Government non-industrial service. The shipowner and insurer are normally entitled to limit their liability to an amount that is linked to the tonnage of the ship.