Bunker Spill Convention
The Convention had been under consideration by the Legal Committee of the IMO since 1995 for the purpose of ensuring compensation to victims of bunker spills from vessels other than tankers as those incidents often happened.
The Convention provides compensation for the damage caused by bunker oil spill from vessels. Its composition is similar to the Civil Liability Convention (CLC), which governs tanker owner's liability for oil pollution damage in terms of the strict liability of shipowners, limitation of liability, compulsory insurance, and direct action against insurers. However, the Convention will not affect shipowners' right to limit their liability under the applicable conventions / laws.
The Convention consists of 19 articles and an annex. The summary of the same is as follows;-
1. Shipowner ( Article 1)
"Shipowner" includes the registered owner, bareboat charterer, manager and operator of the ship.
2. Pollution damage ( Article 1)
"Pollution damage" means:
(a) loss or damage caused outside the ship by contamination resulting from the escape or discharge of bunker oil from the ship, provided that compensation for impairment of the environment other than loss of profit from such impairment shall be limited to costs of reasonable measures of reinstatement actually undertaken or to be undertaken; and
(b) the costs of preventive measures and further loss or damage caused by preventive measures.
3. Scope of application ( Article 2 )
The Convention shall apply exclusively to pollution damage caused in the territory, including the territorial sea, and the exclusive economic zone of a State Party.
4. Liability of the shipowner ( Article 3 )
The shipowner shall be liable for pollution damage caused by any bunker oil on board or originating from the ship, unless the shipowner proves that the damage was resulted from an act of war or other exceptional cause or was wholly caused by a third party's act or omission with the intent to cause damage or by the negligence or other wrongful act of any Government.
5. Exclusion ( Article 4)
The Convention applies neither to pollution damage as defined in the CLC nor to warships, naval auxiliary or other ships owned or operated by a State and used only on Government non-commercial service.
6. Incidents involving two or more ships (Article 5)
The shipowners of all the ships concerned shall be jointly and severally liable for all such damage, which is not reasonably separable.
7. Limitation of liability (Article 6)
The convention shall not affect the right of the shipowner to limit liability under any applicable national or international regime, such as the Convention on Limitation of Liability for Maritime Claims, 1976 (76 LLMC), as amended.
8. Compulsory insurance or financial security ( Article 7)
The registered owner of a ship having a gross tonnage greater than 1,000 shall be required to maintain insurance or other financial security to cover the liability of the registered owner for pollution damage under the applicable national or international regime, but not exceeding an amount calculated in accordance with the 76 LLMC, as amended.
A certificate attesting that insurance or other financial security is in force shall be issued to each ship by the appropriate authority of the State of the ship's registry, or by the similar counterpart of any State Party if the ship is not registered in a State Party.
Any Claim for compensation for pollution damage may be brought directly against the insurer or other person providing financial security for the registered owner's liability for pollution damage.
Each State Party can exempt its coastal vessels operating exclusively within its territorial sea (12 miles from the coast in case of Japan) from the duty to have the compulsory insurance.
9. Time Limits (Article 8)
Rights to compensation under the Convention shall be extinguished unless an action is brought thereunder within three years from the date when the damage occurred. However, in no case shall an action be brought more than six years from the date of the incident which caused the damage.
10. Entry into force ( Article 14) The Convention shall enter into force one year
following the date on which 18 States, including five States each having combined gross tonnage not less than 1,000,000, have singed it.
For your guidance, it seems unlikely to come into force in the near future. We will keep you informed of the developments.
enclosure:a comparative table (92 CLC and The Bunker Convention)