Claims for Damage Caused by Fuel Oil
The International Convention on Civil Liability for Bunker Oil Pollution Damage (Bunkers Convention) establishes a scheme to provide compensation for pollution damage from fuel oil from ships when the Civil Liability Convention does not apply. In accordance with the Bunkers Convention:
- the shipowner is strictly liable for pollution damage resulting from a spill of bunker oil;
- the shipowner is able to limit liability under any applicable national or international regime;
- the registered owners of ships having a gross tonnage greater than 1,000 are required to maintain insurance to cover their liabilities; and
- claims for pollution damage may be brought directly against the insurer.
The applicable regime which establishes liability limits in Australia in respect of claims following a spill of persistent oil is the Convention on Limitation of Liability for Maritime Claims.
The Bunkers Convention will enter into force internationally on 21 November 2008. Australia is not yet a Party to it but work is progressing on its implementation. Implementing legislation, the Protection of the Sea (Civil Liability for Bunker Oil Pollution Damage) Act 2008 (the Bunkers Act) has been enacted but has not yet commenced. The Bunkers Act will commence at the same time as the Bunkers Convention enters into force for Australia. This is expected to be some time in the first half of 2009".
A full desctiption of the Bunkers Convention is available on the on IMO's website.