CLC v Bunker Convention (Blue Card)
- Sunday, March 2, 2014, 19:27
- Hull & Machinery, International Convention, Maritime Convention, Pelayaran, Protection & Indemnity, Protection & Indemnity (P&I)
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The International Convention on Civil Liability for Oil Pollution Damage, 1969 (CLC 1969) came into force in 1975. It introduced a system to determine the liability of tanker owners (as described below) for oil pollution damage. The CLC Protocol, 1992 (CLC 1992) was introduced in 1996. It updated CLC 1969 and increased the amounts of compensation available.
Under CLC, the registered owner of a ship carrying more than 2,000 tonnes of persistent oil as cargo in bulk, has strict liability for any damage caused by the escape or discharge of that oil from his ship. This means that the owner is liable even where there is no fault on his part. The owner is normally able to limit his liability to an amount determined by the size of his ship.
The owner of a tanker registered in a CLC Contracting State (which carries more than 2,000 tonnes of persistent oil as cargo in bulk) is obliged to maintain insurance to cover his CLC liabilities. This insurance is evidenced by a document known as a Blue Card. It is issued by the ship’s P&I insurer to the Flag State registry and they, in turn, issue a CLC Certificate to the registered owner of the tanker. CLC tankers must carry a CLC Certificate on board, attesting the insurance coverage. Effectively, this gives claimants a right of direct action against the insurer.
The International Convention on Civil Liability for Bunker Oil Pollution, 2001 (the Bunker Convention) came into force in 2008. The Convention provides a liability, compensation and compulsory insurance scheme for the victims of damage caused by the escape or discharge of bunker oil.
The Convention applies to any seagoing ship or seaborne craft over 1,000 gross tons of any type whatsoever. The owner of a ship registered in a State Party, or entering a port in the territory of a State Party is required to maintain insurance to cover his Bunker Convention liabilities and to obtain a Certificate from a State Party attesting that the requisite insurance is in place.
The procedure for obtaining a Bunker Convention Certificate is similar to that in place for CLC Certificates. The registered owner requests his insurer to issue a Bunker Convention Blue Card (in electronic format) to the relevant Flag State and they, in turn, issue a Bunker Convention Certificate. The ship must carry a BC Certificate on board, attesting the insurance coverage, whenever it calls at a port or facility located in a State Party. Effectively, this gives claimants a right of direct action against the insurer.
Where a ship is registered in a State that is not party to the Bunker Convention, the registered owner is required to obtain a State-issued Certificate from a State that is party to the Convention.
Any inquiry about P&I Cover, CLC, Bunker Blue Cards, etc please email to firstname.lastname@example.org
Copy paste from original sources for your easy reference and happy reading
by Imam MUSJAB (Tel +628128079130)
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