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Admiralty Law
Admiralty Law
IMO is primarily concerned with the safety of shipping and the prevention of
marine pollution, but the Organization has also introduced regulations
covering liability and compensation for damage, such as pollution, caused by
ships.
The Torrey Canyon disaster of 1967, which led to an intensification of IMO's
technical work in preventing pollution, was also the catalyst for work on
liability and compensation. An ad hoc Legal Committee was established to
deal with the legal issues raised by the world's first major tanker disaster
and the Committee soon became a permanent subsidiary organ of the IMO
Council, meeting twice a year to deal with any legal issues raised at IMO.
The United Nations Convention on the Law of the Sea covers some issues
not regulated under IMO treaty instruments - for example, the jurisdictional
power of the coastal State.
The main issues raised by the Torrey Canyon were: who is to be held
responsible for damage caused by oil pollution, the basis for determining
liability and the level of compensation for damage. There were already well-
established procedures for settling claims resulting from, for example, a
collision between two ships. Generally speaking, only they are to blame, and
only the ships, cargo, and those on board are likely to suffer damage or
injury. But a major pollution disaster, like the Torrey Canyon, involves
third parties and the damage caused can be enormous. It is important to
establish a system which enables liability to be determined and ensures that
any compensation due is paid.
In 1969, a conference convened by IMO adopted a convention dealing with
the civil liability of the ship or cargo owner for damage suffered as a result of
a pollution casualty. The purpose of the International Convention on Civil
Liability for Oil Pollution Damage was to ensure that adequate compensation
was paid to victims and the liability was placed on the ship owner.
Some delegates to the 1969 Conference felt that the liability limits
established were too low, and that the compensation made available in some
cases, therefore, might prove to be inadequate. As a result, another
conference was convened by IMO in 1971 which resulted in the adoption of a
convention establishing the International Fund for Compensation for Oil
Pollution Damage. The Convention came into force in 1978 and the Fund has
its headquarters in London. Unlike the Civil Liability Convention, which puts
the onus on the ship owner, the Fund is made up of contributions from oil
importers. The idea is that if an accident at sea results in pollution damage
which exceeds the compensation available under the Civil Liability
Convention, the Fund will be available to pay an additional amount, while the
burden of compensation will be spread more evenly between shipowner and
cargo interest.
The limits of liability in the two conventions were greatly increased through
amendments adopted by a conference held in 1992, and again during the
Legal Committee's 82nd session held from 16-20 October 2000.
In May 2003, a Diplomatic Conference adopted the 2003 Protocol on the
Establishment of a Supplementary Fund for Oil Pollution Damage. The
Protocol establishes an International Oil Pollution Compensation
Supplementary Fund, the object of which is to provide an additional, third
tier of compensation for oil pollution damage. Participation in the
Supplementary Fund is optional and is open to all Contracting States to the
1992 Fund Convention. However, those States that do not join will continue
to enjoy their present cover under the current CLC/Fund regime.