E

LEGAL COMMITTEE LEG 108/5

108th session 20 April 2021
Agenda item 5 Original: ENGLISH
Pre-session public release: ☒

ADVICE AND GUIDANCE IN CONNECTION WITH THE IMPLEMENTATION

OF IMO INSTRUMENTS

Review of insurance problems with non-IG insurers

Submitted by the International Oil Pollution Compensation Funds (IOPC Funds)

SUMMARY

Executive summary: This document provides an update on the work carried out by
the IOPC Funds on the problems encountered in some oil pollution
incidents involving insurers who are not members of the International
Group of Protection and Indemnity Associations (P & I Clubs).

Strategic direction, 1 and 6

if applicable:

Output: OW 20

Action to be taken: Paragraph 5

Related documents: LEG 107/6; IOPC/APR18/9/1; IOPC/OCT18/5/5/1 and

IOPC/NOV20/5/5/1

Introduction

1 At the April 2018 session of the Executive Committee of the 1992 Fund, delegations
raised concerns relating to the financial losses in incidents where the insurers were not
members of the International Group of Protection and Indemnity Associations
(non-IG insurers) * and tasked the IOPC Fund's Audit Body to examine this matter as part of its
risk management work. The Audit Body continued its work on this matter and reported its
progress to the IOPC Funds governing bodies in 2018, 2019 and 2020.

2 The document, which can be viewed at the following link:

https://documentservices.iopcfunds.org/wp-content/uploads/sites/2/2018/12/IOPC_OCT18_5_5_1.pdf,
includes recommended measures and future tasks to be undertaken suggested by the Audit
Body and a list of incidents involving non-IG insurers with a brief description of the problems
encountered, available at the following link:
https://documentservices.iopcfunds.org/wp-content/uploads/sites/2/2020/08/IOPC-NOV20-5-
5-1_e.pdf

*
See Record of Decisions document IOPC/APR18/9/1, section 3, Incidents involving the IOPC Funds and
the debate in connection with the Nesa R3, Agia Zoni II and Alfa 1 incidents.

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LEG 108/5
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3 As referred to in the document prepared by the Audit Body, this is a matter which
affects both the Civil Liability and the IOPC Fund Conventions. At their December 2020
sessions, the IOPC Funds' governing bodies instructed the Director to present the Audit Body
report to IMO for its consideration and advice.

4 The IOPC Funds would be grateful to receive feedback from the Legal Committee on
this important matter.

Action requested of the Committee

5 The Legal Committee is invited to take note of the information contained in this
document and comment as it may deem appropriate.

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