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
| Tier | Instrument | Payer | Ceiling |
|---|---|---|---|
| 1 | CLC 1992 | Shipowner (via P&I club) | Up to 89.77M SDR (tonnage-scaled) |
| 2 | IOPC Fund 1992 Protocol | Fund (oil-receivers >150k t/y) | Up to 203M SDR TOTAL (incl. tier 1) |
| 3 | Supplementary Fund 2003 | Supplementary Fund members only | Up to 750M SDR TOTAL (~$960M USD) |
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.
Frequently asked
What is the CLC 1992 compensation limit?
CLC 1992 shipowner liability is capped based on ship tonnage: 4.51M SDR for ships <= 5,000 GT; 4.51M SDR + 631 SDR per additional GT above 5,000, capped at 89.77M SDR (~$115M USD at current SDR rates). The 2000 Protocol raised limits ~50%. Compensation above that flows from the IOPC Fund 1992 (up to 203M SDR total incl. shipowner) and Supplementary Fund (up to 750M SDR total).
What is the difference between CLC and Bunker Convention?
CLC 1992 covers persistent oil cargo (crude, heavy fuel oil carried as cargo) on tankers only. Bunker Convention 2001 covers bunker fuel (fuel used by the ship itself) on all ship types. CLC + Fund provide compensation for oil-cargo spills; Bunker Convention covers bunker spills. A tanker in ballast + spilling only bunker fuel triggers Bunker Convention, not CLC.
What is a blue card + why does the master care?
Blue card is the insurance certificate evidencing CLC 1992 financial security (or Bunker Convention certificate for bunkers) — issued by the P&I club, retained by the flag state. Copy must be onboard. If the shipowner cannot show a valid blue card the vessel is refused port entry in any CLC-ratifying state. Master ensures the blue card is current at every port call + notifies P&I club immediately if a pollution incident is even suspected.
Why did Erika + Prestige drive the Supplementary Fund?
Erika 1999 (Brittany, ~20,000 tonnes heavy fuel oil) + Prestige 2002 (Spain, ~63,000 tonnes) both produced damages exceeding CLC + IOPC Fund 1992 limits (then ~135M SDR). The 2003 Supplementary Fund Protocol added a third tier — CLC (shipowner) + IOPC Fund + Supplementary Fund = 750M SDR total (~$960M USD). Erika + Prestige claimants were compensated at reduced rates; the Supplementary Fund closes that gap for future incidents.
What about HNS Convention (chemicals)?
HNS Convention 2010 Protocol — Hazardous + Noxious Substances — is the parallel regime for chemical cargo pollution. NOT YET IN FORCE globally (requires 12 ratifications including specified minimum HNS-receiving tonnage). Interim: national law + P&I coverage. Once in force it will provide CLC-analogous three-tier compensation up to 250M SDR for HNS pollution.
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.
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