Maritime Legislation on Oil
Pollution Prevention and
liability/Compensation
Presented by Capt. Deepak Kapoor –
Nautical Surveyor ,
Directorate General of Shipping,
Mumbai
TREND IN MAJOR OIL SPILLS
Collision in South Korea
Consequential action and claims
Part II
International Obligations
of
Indian Administration
Status of conventions
Instruments

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UNCLOS
IMO
Prevention
 MARPOL
 Intervention
Response
 OPRC
 Salvage
 OPRC HNS
Liability
 CLC
 FUND
 HNS
 Bunkers
Legal
 FAL
 LLMC
Entry
States
Age
% W. Tonnage
23.11.94
17.03.58
94
168
15 y
51y
-----97.22%
02.10.83
06.05.75
149
86
55( 26)y
34y
99.01
74.40%
13.05.95
14.07.96
14.06.07
97
57
23
14y
13y
02y
67.03%
47.16%
30.88%
30.05.96
30.05.96
21.11.08
121
103
13
37
40(13) y
38(13) y
----05M
05.03.67
01.12.86
114
52
42y
23y
96.39%
94.12%
13.64%
75.25%
90.31%
49.08%
Administrative Aspect of Oil Pollution in International Law
Umbrella Convention

UNCLOS Article 207/208/209/210/211/212- adoption of laws for pollution from land
based/sea bed activities/activities from area/dumping/vessels/from air

UNCLOS Article 221 -Measures to avoid pollution arising from maritime casualties- beyond
TW
Prevention
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MARPOL 73/78- Parties to give full effect to the provisions of the convention
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High Seas Intervention Article 1 - Measures to prevent, mitigate or eliminate grave &
imminent danger to its coastline and other provisions
Response


OPRC Article 1– individual or jointly to take measures
Article 9 of Salvage Convention- Rights of the Coastal States to protect its coastline
Liability

CLC/FUND 92 conventions- State party has agreed to uniform international rules for
determining liability and providing adequate compensation.

Bunker convention 2001- State party has agreed to uniform international rules for
determining liability and providing adequate compensation for damage by bunker oil
MARPOL 73/78(Prevention)
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Application- Types of Vessels
Construction- Tanks for residues
SBT/CBT/SLOP Tanks
Double Hull and Double Bottom
Pump room bottom protection
Limitation of size
COW arrangements
Pumping and discharge arrangement
OWF Equipment
Oil/water interface detector
Control of operational discharge
SOPEP
Oil Record Book
Reception Facilities
Sub division and damage stability
Survey and certification
High Sea Intervention (Prevention)
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Consultation with other states and experts
Interim measures to protect lives and
repatriation
 Set up list of experts
 Measures should be reasonable
 Liability on the coastal state in case of
damage to others
 Conciliation
 Arbitration
 List of substances
OPRC (Response)
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Oil pollution emergency plans
Oil pollution reporting procedures
 Action on receiving an oil pollution report
 National and regional systems for preparedness and
response
 International co-operation in pollution response
 R&D Promotion
 Technical Co-operation
 Promotion of Bilateral/Multilateral Co-operation in
Preparedness and response
 Reimbursement of costs and assistance
 Establishment of oil pollution combating equipment
stockpiles
 Development of training programme
 Improving salvage services
 Co-operation between states and insurers
Salvage Convention (Response)

Application judicial or arbitral proceedings
 Platform/state owned vessels
 Rights and remedies for public authorities
 Duties of salvor ,owner and master
 Rights of coastal states
 Conditions for reward
 Criteria for fixing reward (No cure and No Pay)
 Special compensation (SCOPIC)
 Salvage of persons
 Claims and actions( 2years)
 Common understanding on Article 13/14
 Amendment to York Antwerp Rules
 Transmittal of text of laws to IMO
CLC/Bunker/HNS (Liability)
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Applicability- up to EEZ
In case of ships carrying cargo as oil in bulk
Compulsory insurance by ships
Liability up to limit as per GRT
Constitution of FUND
Acceptance of certificates issued outside
India
 Ban on entry and leaving
 Jurisdiction of courts
Reference Documents on Pollution Response and
Claims (All 4)
1.
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Manual on Oil Pollution EditionSection I
Prevention
Section II
Contingency Planning
Section III Salvage
Section IV Combating Oil Spills
Section V Administrative Aspects of Oil pollution
Response
Section VI IMO guidelines on samplings & identification
of oil
spills
Comprehensive manual on Port Reception facilities
Guidelines to ensure the adequacy of port waste reception
facilities
2.Chemical Pollution
 Problem Assessment and Response Arrangements
 Search and Recovery of Packaged goods at Sea
Claims settlement
3.
IOPC claims Manual Edition
Part III
Where do we stand now?
National Laws (All 4)
Merchant Shipping Act 1958:
 Section 356 C – Provisions of Prevention of Pollution
 Section 356 I – Oil reception Facilities at ports
Provisions for Containment for accidental pollution
 Section 356 J - Power to give Notice to polluting ship
 Section 356K – Power to take measures for preventing or containing oil
pollution
 Section 356L – Power to give directions to certain ships
 Section 356M - Oil Pollution Cess
 Part XA- Limitation Liability
 Part XB-Civil Liability for oil pollution damage
 Part XC International Oil pollution Compensation Fund
Indian Coast Guard Act any notifications
Indian Ports Act 1917 as amended
Inland Vessels Act 1917 as amended
Compensation Regime
(Oil Tankers)
LIMITS OF LIABILITY
(Non Tankers/Tankers)
Legal
Main Convention
LLMC 1976 – PERSONAL CLAIMS – 333 000/- SDR – 499
500/- USD.
Above 70,000 GT above 21million SDR+
 PROPERTY CLAIMS – 167 000 SDR – 250 500 USD.
Above 70,000GT above 10.9million SDR+
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Protocol
LLMC 1996 – PERSONAL CLAIMS - 2000 < 2 Million SDR –
3.17 Million USD.
Above 70,000GT above 48.4million SDR+
 PROPERTY CLAIMS – up to 2000GT-2million SDR.
Above 70,000GT above 24.2million SDR+

LIMITS OF LIABILITY FOR ships carrying oil
as Cargo in bulk
(01st November 2003)
Tier I
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CLC 1969 – 3 Million TO 14 Million SDR (22 Million USD)
CLC 1992 – 59.7 (88 Million USD) TO 89.77 Million SDR – 89 142 Million USD
Tier II
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Fund 1971 – 60 Million SDR (95 Million USD)
Fund 1992 – 135 Million SDR (240 Million USD) – 203 Million SDR (321 Million
USD).
Tier III
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S- Fund – 750 Million SDR (1186 Million USD).
STOPIA 2006 – 20 Million SDR (32 Million USD for tankers up to 2954 GRT)
TOPIA 2006 – indemnification 50%.
Review: Between 2006 to 2016
Part IV– Ways of Improving
By Bridging the Gap
OBSERVATIONS MADE AT CABINET SECRETARY
MEETING ON 08TH DECEMBER’ 2003 ON SUBJECT
ISSUE
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No indigenous facilities for TIER III, Oil Spills
Operational & Functional Responsibilities rest
with Coast Guard
Legal & Administrative responsibilities rest with
DG Shipping
Risk exposure to Oil Spill likely to increase
Oil Spill Management requires operational &
functional agency mandated to handle spills under
overall supervision of Maritime Authority i.e. DG
Shipping
A separate entity was not necessary
Decisions taken during the Meeting
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Indigenous Tier III should be developed within
coast guard
Coast Guard to function under the Ministry of
Defence
R&D activities & requisite Science & Technology to
be given by Oil Industry Safety Directorate
Legal & Administrative matters, the responsibility of
Maritime Authority under DG Shipping
DG Shipping to function under the direction of
Ministry of Shipping
Compressive Oil Spill Management Policy for
India to be finalized at earliest
Tiered Response Concept
Threat to Indian Sub continent
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Call by Region and Vessel Type
Container
Dry Bulk
Gas
GC
Passenger
Ro Ro
Miscellaneous
Tanker
27228
16734
3695
20036
1812
7953
4494
32923
8%
9%(16000)
9% (3000)
4% (18,000)
1%
6%
4%
11%(18000)
501 & 13 Live VLCC and ULCC
2.2billion oil trade/year(89% of total volume of global trade
,231miilion by pipeline and 17million by road /rail tankers
New Instruments
Review of rules for INTERVENTION
HIGH SEAS Convention
 Review of rules for OPRC Convention
 Enact Bunker Convention and frame
rules
 Consider Ratification of Supplementary
Fund – 2003
 Consider Ratification of LLMC 1996
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Fill up Gaps
Between various applicable Acts
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Power of port to prohibit certain vessels
Rules for arrival/departures of vessels
Procedures for loading, discharge, ballast and wastes
Provisions for reception facilities
Contingency plans
Procedures for dealing with oil spills
Provisions for place of refuge
Right to seek compensation
Relationship between orts and others
Competent of port to deal with incident outside port
Power of port to detain
Audit of ports
Insurance against oil pollution and wreck removal
Provisions of cooperation between various authorities
Provisions for salvage services
Penalty provisions
Delegation of powers to CG
Summary
 Legal
framework for Oil Pollution &
Liability to strengthen for facilitatation of
foreign trade and achieving economic
goals
 Lays down and implements basic
objectives of State (Preamble)
 Good Rules or procedure for detention,
denial of entry, banning departure or
arrest with deterrent measures
 Legal framework to regulate relationship
with all parties
Thank You for paying
attention