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Compulsory Insurance and Compensation for Bunker Oil Pollution Damage

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ISBN-10: 3540459006

ISBN-13: 9783540459002

Edition: 2007

Authors: Ling Zhu

List price: $179.99
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Oil tankers are not the only vessels that have caused oil pollution at sea. Numerous spills in the past have been of heavy fuel oil from non-tankers. However, the international liability and compensation regime covered only oil pollution damage caused by oil tankers. There was thus a need to bring the law on marine oil pollution responsive to oil pollution damage caused by non-tankers.  In March 2001, the International Convention on Civil Liability for Bunker Oil Pollution Damage was adopted following a diplomatic conference at the International Maritime Organization. Though this convention has not yet come into force, its various aspects should already be considered as they will surely…    
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Book details

List price: $179.99
Copyright year: 2007
Publisher: Springer Berlin / Heidelberg
Publication date: 11/3/2006
Binding: Paperback
Pages: 242
Size: 6.00" wide x 9.00" long x 0.50" tall
Weight: 0.880
Language: English

The aim of the research
The scope of the research
Methods used for the research
Pollution from Ships' Bunkers and the Advent of the Bunkers Convention
A brief history of the development of the oil spill civil liability system
Tovalop and Cristal
International Conventions
The need for the Bunkers Convention
The scope of earlier conventions
National legislation and the background work on the Bunkers Convention
Risk and technical considerations
The birth of the Bunkers Convention
Overview of the Bunkers Convention
Categories of ships
Does the Bunkers Convention apply to oil tankers?
Scope of application
Liability established by the Bunkers Convention
Liable parties
Channelling of liability
Shipowners' liability is joint and several
The basis of liability and exonerating circumstances
Limitation of Liability
Compulsory insurance and direct recourse
Three prerequisite factors
"Registered owner of a ship"
"Gross tonnage" - insurance threshold
"In an amount equal to the limits of liability..." amount of limitation
Insurance certificate and its recognition
Direct action against the insurer
Time limit for bringing an action
Jurisdiction, recognition and enforcement
Other matters
Adopted resolutions
Concluding remarks
The Birth of Compulsory Insurance for Oil Pollution Liability
The concept of compulsory insurance
Development of the concept of compulsory insurance
The system of insurance
Compulsory insurance as defined in international civil liability conventions
Insurance or other financial securities
The need for compulsory insurance for bunker-oil pollution liability
Possible insurers
The types of marine insurance and their coverage
Cargo insurance and its coverage
Hull insurance and its coverage
Freight insurance and its coverage
Protection and Indemnity Insurance
Brief introduction
The main risks covered by the P&I Club
Insurance contract between the shipowner and the Club
The International Group of P&I Clubs
The insurers offering coverage for oil-pollution liability
The P&I Clubs
Pollution liability clause
Limitation of liability terms
The role of the P&I Club with regard to an oil-pollution incident
Oil-pollution liability insurer
Measures for an oil-pollution incident taken by the Clubs
Clean-up or salvage operation
Source of funding
Providing legal advice
Interaction with other international organisations
The legal framework of the IMO conventions
Cooperation with the IOPC Fund
Technical assistance from the ITOPF
Other insurers offering OPA insurance
Financial responsibility requirement in the OPA 90
The concerns of the P&I Clubs to be the guarantors
Some alternative ways of meeting financial responsibility requirements
Concluding remarks
Strict Liability and Insurance
The basis of liability in the Bunkers Convention
The difficulties in applying the common law of torts
Fault-based liability leads to unfair results for pollution victims
Strict liability and its application
The main reasons for introducing strict liability
Ensuring protection of and compensation for victims
The impact on the industry
The industry bears the cost of pollution damage
Incentive to improve prevention of marine pollution
Distribution of liability and exceptions to liability
Who shall be liable?
Provisions in the CLCs
Liability of the cargo interest
Liability of the ship
The second-tier liability of the cargo-owner
Liability rule under the Bunkers Convention
Exceptions to liability
Types of exceptions in general
Exceptions available to the shipowner in the Bunkers Convention
Channelling of liability
Implementation of liability: insurance
Proposals during the preparatory work of the Convention
Two alternative means
Separate insurance policies
Co-assurance under one policy
Concluding remarks
Insurance and the Quest for Adequate Compensation
Certification of insurance
Basic requirements in the Bunkers Convention
Administrative burden corollary to the issuance of the certificate
The administrative burden of the flag States
Port State control regarding the certificate
Electronic means for the certificate
The validity of the certificate
Availability and capacity of insurance for bunker-oil spill liability
Other related issues
"Polluter pays" principle
The significance of Art. 7(8) and financial standing of providers of insurance or financial security
The meaning of mutuality
Role of mutuality
The ability to absorb large claims
Possible motivation for risk minimisation
Liability insurance and compensation fund
Adequacyand other types of compensation
The willingness of P&I Clubs to increase their coverage limit
The compensation paid by the cargo interests
Compensation paid by other jointly liable persons
"Joint and several liability" rule in relation to the compensation purpose
Bareboat charterer
"Demise charterer" or "bareboat charterer"?
The insurance of the bareboat charterer
Operator and manager
Liability as the time or voyage charterer
Compensation paid by the time or voyage charterer
State liability and contributions
Concluding remarks
Limitation of Liability and the Limit of Insurance
The global limitation of liability system in relation to ships
Limitation of liability rule in general
The 1957 Convention, 1976 LLMC and its 1996 Protocol relating to tanker-oil pollution liability
Limitation rules in the Bunkers Convention
Pollution damage eligible for limitation
Pollution damage arising from a bunker-oil spill
The claims subject to limitation under the 1976 LLMC and its Protocol
The amount of the funds available under the LLMCs
Other aspects relevant to claims for bunker-oil spill liability under the 1976 LLMC and its Protocol
Conduct barring the right to limit
Constitution and distribution of the limitation fund
The right to limit liability
The reasons for maintaining the right to limit
Unsatisfactory outcome of the limitation regime
The relation of limitation of liability and insurance
The insurability and limitation of liability
The possibility to have a unlimited liability
Concluding remarks
Direct Action against the Insurer and its Limited Effect
Rights of a third party to claim on the insurance policy
Direct-action statutes
English law
United States legislation
The limited effect of direct action under P&I insurance
Coverage and exclusions of P&I insurance
P&I insurance is one of indemnity
"Pay to be paid" rule
Other defences of a Club against the claim from a third party
Direct-action right under the Bunkers Convention
"The defences...which the shipowner would have been entitled to invoke"
Meaning of the phrase "wilful misconduct of the shipowner"
Interpretation of "wilful misconduct" in relation to limitation of liability
Interpretation of "wilful misconduct" in insurance law
The determination of a competent court
"Wilful misconduct in P&I insurance
"Wilful misconduct" in Article 7(10)
Scope of the claim: pollution damage
The uncertain nature of liability for pollution
"Pollution damage" in tanker-oil spill incidents
CMI guidelines on oil-pollution damage
The policy adopted by the IOPC Fund
Viewpoint of the P&I Clubs
Pollution damage under the Bunkers Convention
Recourse action
Concluding remarks
Outlook on Insurance and Compensation for Bunker-Oil Pollution Liability
Main interests in the insurance system
Victims: "Loss of cover" and full compensation
Loss of cover
"Small ship" issue
Adequate compensation
The P&I Clubs: maintaining their sustainable development
Shipowners: the central actor
The comparison of the insurer's exposure to the CLCs and the Convention
The types of ships involved
The number of ships involved
The limitation of liability
Concluding remarks
Summary of Study
The concept of compulsory insurance and its compensation purpose
Other features of the Bunkers Convention and their interrelations with compulsory insurance
Text of the Bunkers Convention