IOPC Funds adopt resolutions on uninsured and unsafe ships

Published: 14 November 2024

At its recent meetings in London, the International Oil Pollution Compensation (IOPC) Funds adopted resolutions to raise awareness of the risk of uninsured and unsafe ships. The resolutions were adopted as a result of the increasing number of ships in breach of international standards which are transporting oil and the potential impact these ships might have on the IOPC Funds and the wider international liability and compensation regime.

The resolutions urge member states to enforce IMO safety and environmental standards and insurance requirements under the 1992 Civil Liability Convention and encourages cooperation in investigating oil pollution incidents involving uninsured ships or those not complying with applicable safety and environmental standards. The governing bodies of the funds also endorsed guidance for member states setting out an internal procedure for the funds’ secretariat to follow in the event of an incident, aimed at ensuring the availability of the necessary information to identify the parties involved and determine the applicability of the 1992 Civil Liability and Fund Conventions.

In relation to the 2010 Protocol to the International Convention on Liability and Compensation for Damage in Connection with the Carriage of Hazardous and Noxious Substances by Sea, 1996 (the 2010 HNS Convention), four countries very encouragingly informed the funds of their joint commitment to ratify the 2010 HNS Convention in summer 2025. This could lead to the entry into force of the convention in 2027.

BIMCO has observer status at the IOPC Funds which provide compensation for oil pollution damage resulting from oil spills from tankers and therefore play a key role in the international liability and compensation regime for oil pollution damage. The funds are financed through contributions from recipients of crude and/or heavy fuel oil in the member states carried by sea. BIMCO strongly supports the 2010 HNS Convention which, when in force, will provide a regime of liability and compensation for damage caused by HNS cargoes transported by sea, including oil and chemicals.

The governing bodies were also updated on oil pollution incidents involving the IOPC Funds and the status of submission of oil reports which remains an issue of significant concern as a number of member states have outstanding reports, some for several years. In case of outstanding oil reports and outstanding contributions for two or more years, the Funds can postpone payment of compensation.

More information about the IOPC Funds and the 5 to 8 November meetings is available here: IOPC FUNDS | Detail

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