Larger compensation to oil pollution victims enters into force

Larger compensation to oil pollution victims enters into force    Increased levels of compensation will be available for victims of oil pollution from oil tanker accidents starting Thursday with the entry into force of an international protocol agreed in 2003 and ratified by Japan and seven European countries.
   The 2003 protocol will set up an “International Oil Pollution Compensation Supplementary Fund,” to supplement the compensation available under the 1992 Civil Liability Convention and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage. It will provide an additional, third tier of compensation, the International Maritime Organization (IMO) said.
   Participation by countries in the new compensation scheme is optional. At present, the United States has not ratified it.
   Under the new international protocol, the total amount of compensation payable for any one oil pollution incident will be for up to 750 million Special Drawing Rights ($1.1 billion), including the amount of compensation paid under the existing 1992 Civil Liability Convention and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage.
   The compensation scheme under the 2003 protocol is financed by payments to a general fund made by major oil importers, unlike the 1992 Civil Liability Convention, which holds the shipowners liable and requires them to up to take out insurance against pollution claims. The 1992 convention compensation was found to be insufficient for major oil spills.
   “It is expected that the increased compensation should put an end to the practice of prorating of payment of claims, which, although it has been unavoidable, has led to criticisms of the 1992 convention,” the IMO said.
   “With the entry into force of the 2003 Protocol, IMO has substantially enhanced the compensation available under the 1992 Convention,” the London-based United Nations agency said.
   In 2000, the IMO already raised compensation limits under the Civil Liability Convention and the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage, in response to the “Nakhodka “oil tanker incident in 1997 off Japan and the oil spill of the “Erika” off the coast of France in 1999.
   The new International Oil Pollution Compensation Supplementary Fund agreement of 2003 has eight contracting states: Denmark, Norway, Finland, France, Germany, Ireland, Spain and Japan.