CLC + IOPC Funds + Supplementary Fund

The three-tier tanker oil-pollution liability regime — Civil Liability Convention 1992 (shipowner strict liability) + IOPC Fund 1992 (industry-funded second tier) + Supplementary Fund 2003 (third tier for catastrophic spills) — is the single most-litigated maritime liability regime + the model for HNS + Bunker Convention. This page covers the mechanics: who pays, how much, when the fund pays, blue cards, direct action, and the notable incidents (Erika, Prestige, Hebei Spirit) that shaped it.

Three-tier structure

Strict liability + direct action

• Strict liability. CLC 1992 imposes strict liability on the shipowner for pollution damage in the territorial sea + EEZ of a Party state. No proof of fault required. Statutory defences are limited: act of war, act of God, third-party intent, negligence of state (aids to navigation).
• Direct action. Claimants may sue the P&I club (insurer) directly under CLC 1992 Article VII. This is unusual in international law — normally insurer indemnifies insured. Direct action removes the barrier of shipowner insolvency + accelerates payment.
• Channelling. Only the shipowner is liable under CLC 1992 (not master, crew, salvor, charterer, manager). Simplifies claims + prevents fault-attribution litigation.
• Time bar. 3 years from incident + 6 years for latent damage.

Blue card + evidence onboard

• CLC certificate (blue card). Issued by flag state after evidence of P&I coverage. Copy must be onboard every tanker > 2,000 GT carrying persistent oil. Any CLC-ratifying port state can inspect + refuse entry.
• Renewal. Annual — coincides with P&I cover renewal (20 February each year). Master ensures the current-year certificate is aboard before the 20 Feb renewal window.
• Similar certificates. Bunker Convention certificate (all ships >1,000 GT) + MLC financial security certificate + wreck-removal (Nairobi Convention) certificate all follow the same pattern.

Notable incidents

• Torrey Canyon (1967). Pre-CLC. Drove the original 1969 Convention + 1971 Fund. Bermuda-flagged tanker, ~120,000 tonnes crude, Scilly Isles. Fault attribution + inadequate compensation drove IMO to draft strict-liability regime.
• Exxon Valdez (1989). US did NOT ratify CLC — instead enacted OPA 90 with unlimited liability. Alaska. ~37,000 tonnes crude. Total damages ~$5B. Drove US pattern of unilateral high-limit regime distinct from international CLC.
• Erika (1999). Maltese-flagged, ~20,000 tonnes heavy fuel oil, Brittany. Damages exceeded CLC + IOPC Fund 1992 limits (~135M SDR then). Claimants partially compensated. Drove the 2003 Supplementary Fund Protocol.
• Prestige (2002). Bahamian-flagged, ~63,000 tonnes fuel oil, Spain + France + Portugal. Damages ~1B USD. Similar exhaustion of Fund 1992 cap. Together with Erika drove the Supplementary Fund adoption.
• Hebei Spirit (2007). Hong Kong-flagged, ~10,000 tonnes crude, Korea. Master + Chief Officer criminally detained for 18 months by Korean authorities despite CLC channelling of civil liability. Drove IMO/ILO Fair Treatment Guidelines 2006 attention. See Fair treatment guidelines.
• Deepwater Horizon (2010). Not CLC (US OPA 90). ~500,000 tonnes crude, Gulf of Mexico. Total settlements ~$65B. Larger than every CLC event combined; reinforced the OPA 90 unlimited-liability regime as distinct from international CLC.

Practical implications for master + CE

• Blue card check. Verify onboard before every port call. Expired or missing = detention risk.
• Immediate P&I notification. Any spill or suspected spill — call P&I emergency line + activate the Shipboard Oil Pollution Emergency Plan (SOPEP). Do NOT try to determine liability yourself or commit to figures.
• Post-incident detention. Master + CE may be criminally detained by port state despite CLC civil-liability channelling. Retain a maritime attorney via P&I criminal defence cover BEFORE giving any statement. See Fair treatment guidelines.
• Documentation. Preserve Oil Record Book + Bunker Delivery Notes + ODME chart + navigational log — these are the CLC-relevant evidence.

See also

• · Bunker Convention (2001).
• · LLMC (limitation of liability).
• · Nairobi Convention (wreck removal).
• · P&I insurance · P&I clubs.
• · OPA 90 (US unilateral regime).
• · Fair treatment guidelines.

Last verified 2 days ago