TUGAS KESKAP 2 (CLC and FUND)
TUGAS KESKAP 2 (CLC and FUND)
TUGAS KESKAP 2 (CLC and FUND)
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OUTLINE OF THE SUMMARY
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ABOUT CIVIL LIABILITY CONVENTION
CLC is the short form for International Convention on Civil Liability for Oil Pollution Damage
CLC convention first came into existence in 1969 and was called CLC 69. This convention was later amended in 1992. CLC
92 was amended in the year 2000 to increase the amount of compensation
The 1992 Civil Liability Convention covers spills of cargo and/or bunker oil from laden, and in some cases unladen sea-
going vessels constructed or adapted to carry oil in bulk as cargo (but not to dry cargo ships).
CLC convention can be summarized in four points :
Ship owner is liable for the oil spills originating from his ship
There are very few exceptions to this liability to the ship owners in case of oil spills from their ships
There is a maximum limit of liability set out in CLC according to the tonnage of the ship. This limit will not be applicable
if owner is at fault
It is compulsory for the ship owners to take insurance to cover his liability in case of oil pollution from his ships
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Source : https://www.myseatime.com/blog/detail/a-basic-and-simple-guide-of-civil-liability-convention-92
THE SCOPE OF CLC
Type of oil
CLC deals with pollution from persistent oil only. The pollution from persistent oil is more serious when
compared to non-persistent oils. Persistent oils require more resources and money for clean up operation. So the
CLC convention applies to the pollution of persistent oils. The example of persistent oil are : crude oil, fuel oil, heavy
diesel oil, lubricating oil and whale oil
Area of Application
The area to which CLC convention would apply is covered under annex II of the convention.The CLC
convention applies to any pollution incident that occurred either in the :
i. Territory and Territorial waters of a contracting state. In simple words territorials waters is the area of 12 NM
radius from the baseline of the contracting state.
ii. Exclusive economic zone (EEZ) of the contracting state. In simple words EEZ is the area of 200NM radius from
the baseline of the contracting state.
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Damages because of pollution incidents
CLC deals with the pollution incidents but damage can be much more than the pollution it self. Damage include
physical injury, psychological conditions and loss of income resulting from the pollution. CLC convention covers the
expenses for all of these damages.
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How Much Ship Owner Need to Pay ?
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ABOUT FUND
The 1992 Fund Convention, which is supplementary to the 1992 Civil Liability Convention, establishes a regime for
compensating victims when the compensation under the applicable Civil Liability Convention is inadequate.
The International Oil Pollution Compensation Fund 1992, generally referred to as the IOPC Fund 1992 or the 1992
Fund was set up under the 1992 Fund Convention.
The purposes of the Fund Convention are:
To provide compensation for pollution damage to the extent that the protection afforded by the 1969 Civil
Liability Convention is inadequate.
To give relief to ship owners in respect of the additional financial burden imposed on them by the 1969 Civil
Liability Convention, such relief being subject to conditions designed to ensure compliance with safety at sea and
other conventions.
To give effect to the related purposes set out in the Convention.
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THE SCOPE OF FUND
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THREE SITUATIONS WHEN MONEY FROM THE FUND MAY BE PAID
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What Claim Need To Pay ?
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FINANCING OF THE 1992 FUND
The 1992 Fund is financed by contributions levied on any person who has received in one calendar year more
than 150 000 tones of crude oil and/or heavy fuel oil (contributing oil) in a Member State of the 1992 Fund.
Basis of Contributions :
The levy of contributions is based on reports of oil receipts in respect of individual contributors.
Member States are required to communicate every year to the 1992 Fund
This applies whether the receiver of oil is a Government authority, a State-owned company or a private company.
Oil is counted for contribution purposes each time it is received at a port or terminal installation in a Member
State after carriage by sea.
IOPC
The IOPC Funds are funded by the oil industry and managed by Governments. The governing bodies of the
organizations, consisting of each Funds Member States, meet twice per year to make decisions on compensation
payments, policy matters and budgetary matters, including the amounts to levy in contributions. Only those entities
receiving in excess of 150 000 tones of contributing oil in a year will be invoiced for contributions.
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SUPPLEMENTARY FUND
The International Oil Pollution Compensation Supplementary Fund, 2003 (Supplementary Fund) was established
through the entry into force of the Supplementary Fund Protocol in 2005. The Supplementary Fund provides
additional compensation beyond the amount available under the 1992 Fund Convention in States which are also
Parties to the Protocol. The total amount available for compensation for each incident is 750 million SDR, including
the amounts payable under the 1992 Conventions. Annual contributions to the Supplementary Fund are made on the
same principle as contributions to the 1992 Fund. However, the Supplementary Fund differs from the 1992 Fund in
that, for the purpose of paying contributions, at least 1 million tones of contributing oil are deemed to have been
received each year in each Member State.
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The 1992 Fund pays compensation when:
the damage exceeds the limit of the shipowners liability under the 1992 CLC, or
the shipowner is exempt from liability under the 1992 CLC, or
the shipowner is financially incapable of meeting his obligations in full under the 1992 CLC and the insurance is
insufficient to pay valid compensation claims.
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