The very first tier of compensation for oil spill damage is sourced from the Protection and Indemnity insurer of the vessel (P&I Club) on behalf of the shipowner below the International Convention on Civil Liability for Oil Pollution Harm (Civil Liability Convention or CLC). The International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Harm, 1992 (the 1992 Fund Convention). The limitation of liability may disappear exactly where it can be proved that the accident resulted from a private act or omission of the ship-owner, committed recklessly or with intent to cause damage, and with expertise that such damage would almost certainly occur. This is one more explanation for which the bareboat charterer, the manager and the operator (if a distinction among bareboat charterer and operator is conceivable in practice) would be compelled to insure their liability.

The 1992 Fund Convention established the International Oil … Read the rest >>>