Oil Pollution Conventions

Scope of compensation CLC
• pollution prevention and clean-up measures
• Damage to property
• Economic losses


Advantages of 1992 CLC
Tanker owner and P&I Club insurer ‘strictly liable’ to pay compensation
Protection for responders and high level of certainty of reimbursement Prompt payment of compensation without litigation
Government, citizens, local industry financially ‘protected’ in the event of an oil spill within EEZ


Limitations of 1992 CLC
• Spill must be attributed to specific tanker
• Amount of compensation determined by size of tanker
• Spill in sensitive area from a small tanker can easily exceed available compensation
• In rare instances tanker owner may be exempt under CLC (e.g. acts of war or
sabotage) or unable to pay compensation…