International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (FUND 1)
- Type: Convention
- Date of signature: 18/12/1971
- Place of signature: London, United Kingdom
- Depositary: Secretary-General of the International Maritime Organization
- Date of entry into force: 16/10/1978
What is it about?
This Convention presents advancement in comparison to the International Convention on Civil Liability for Oil Pollution Damage (Brussels, 29 November 1969). It creates an International Fund contributed to by professionals of the petroleum industry in each Member State and designed to compensate the victims of oil pollution damage (private individuals or public entities) outside of the legal obligations of the owners. The allocated compensation can reach as much as 82 million US dollars. Since its entry into force, the present Convention has been amended several times. A Protocol adopted on 19 November 1976 introduces Special Drawing Rights, a new unit of measure as a basis for calculating compensation. The Protocol of 25 May 1984 raises the ceiling of compensation. The Protocol of 27 November 1992 aims to replace the Convention of 1971 by creating a new compensation fund (FUND 2), offering an indemnisation up to 256 million US dollars. State parties to the Protocol of 1992 cease to be a party to the 1971 Convention. The amendments of 18 October 2000 and the Protocol of 16 May 2003 also revise the amount of compensation offered to victims of oil spills up to 291 million US dollars.
Why is it relevant?
State parties to the 1971 Convention and its 1992 Protocol provide for their population affected by an oil spill to be compensated without having to engage in lengthy legal procedures. The attributed funds compensate State parties for damage created by pollution and loss of income in the fishing and tourism industry. The Protocol of 1992 is considered to be the instrument of reference regarding to oil damage pollution and compensation offered to its victims.
The International Fund for Compensation for Oil Pollution Damage (FUND 1, 1971 and FUND 2, 1992) is administered by a Secretariat placed under the responsibility of the International Maritime Organization. In 2003, 21 States representing 30% of the world fleet had ratified the present Convention.
- Protocol to Amend the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (FUND 2) (London, 27 November 1992)
- International Convention on Civil Liability for Oil Pollution Damage (Brussels, 29 November 1969)