Protocol of 2003 to amend the International Convention on the Establishment of an International Fund for Oil Pollution Damage, 1992
- Type: Convention
- Date of signature: 16/05/2003
- Place of signature: London, United Kingdom
- Depositary: International Maritime Organization, (IMO)
- Date of entry into force: 03/03/2005
What is it about?
The 2003 Protocol establishes a fund which supplements the compensation available under the 1992 Civil Liability and Fund Conventions with an additional third tier of compensation. The Protocol is optional and participation is open to all States party to the 1992 Fund Convention (Fund 2). The total amount of compensation payable for any one incident will be limited to a combined total of 750 million Special Drawing Rights (SDR) (just over US$1,000 million) including the amount of compensation paid under the existing CLC/Fund Convention. Annual contributions to the Fund will be made in respect of each Contracting State by any person who, in any calendar year, has received total quantities of oil exceeding 150,000 tons. However, for the purposes of the Protocol, there is a minimum aggregate receipt of 1,000,000 tons of contributing oil in each Contracting State. The Assembly of the Supplementary Fund will assess the level of contributions based on estimates of expenditure (including administrative costs and payments to be made under the Fund as a result of claims) and income (including surplus funds from previous years, annual contributions and any other income). Amendments to the compensation limits established under the Protocol can be adopted by a tacit acceptance procedure, so that an amendment adopted in the Legal Committee of IMO by a two-thirds majority of Contracting States present and voting, can enter into force 24 months after its adoption.
Why is it relevant?
The Supplementary Fund substantially increases the total amount of compensation payable in the case of qualifying incidents. The extra compensation made available, will more fully cover the damage of polluting incidents that would not otherwise be covered to any significant degree by the original Fund. An example of such an incident is the Prestige catastrophe in Spain in 2002 where only 15% of the total loss could be repaid in response to each valid claim.
The supplementary fund will apply to damage in the territory, including the territorial sea, of a Contracting State and in the exclusive economic zone of a Contracting State.
- The International Convention on Civil Liability for Oil Pollution Damage, 1969
- Protocol to the International Convention on Civil Liability for Oil Pollution Damage, 1969 (CLCPROT 1976)
- International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage (FUND) (London, 18 December 1971)
- 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)