OIL POLLUTION (LIABILITY AND COMPENSATION) g CAP. 412.  1
CHAPTER 412
OIL POLLUTION (LIABILITY AND 
COMPENSATION) ACT
To provide for Malta’s accession to the Protocol of 1992 amending the
International Convention on Civil Liability for Oil Pollution Damage,
1969 and the Protocol of 1992 amending the International Convention on
the Establishment of an International Fund for Compensation for Oil
Pollution Damage, 1971, and for the implementation of the provisions of
these Protocols.
17th December, 1999;
6th January, 2001
ACT XX of 1999, as amended by Legal Notice 223 of 2003.
Title.
Compensation) Act. 
Interpretation.
"Conventions" means the 1992 Fund Convention and the 1992
Liability Convention;
"Fund Convention" means the International Convention on the
Establishment of an International Fund for Compensation for Oil
Pollution Damage, adopted at Brussels on 18 December, 1971, as
amended by the Protocol thereto done in London on the 19
November, 1976;
"IOPC Fund" means The International Oil Pollution
Compensation Fund 1992 established under the provisions of the
1992 Fund Convention;
"Liability Convention" means the International Convention on
Civil Liability for Oil Pollution Damage adopted at Brussels on 29
November, 1969, as amended by the Protocol thereto done at
London on the 19 November, 1976; 
"Minister" means the Minister responsible for shipping and
except for the power to make regulations granted to the Minister by
this Act, includes any public officer, or any officer of any body
corporate established by law, acting under his authority; 
Cap. 234.
"Registrar-General" means the Registrar-General of Shipping
and Seamen appointed under article 363 of the Merchant Shipping
Act and includes any person acting under his authority; 
Cap. 226.
assigned to the term in the Territorial Waters and Contiguous Zone
Act; 
"1992 Fund Convention" means the Fund Convention as
amended by the 1992 Fund Protocol known as the International
Convention on the Establishment of an International Fund for
Compensation for Oil Pollution Damage, 1992, and any
amendments thereto accepted by the Government of Malta; 
2 g CAP. 412. OIL POLLUTION (LIABILITY AND COMPENSATION)
"1992 Fund Protocol" means the Protocol of 1992, adopted at
London on the 27th November, 1992, amending the Fund
Convention;
"1992 Liability Convention" means the Liability Convention as
amended by the 1992 Liability Protocol known as the International
Convention on Civil Liability for Oil Pollution Damage, 1992, and
any amendments thereto accepted by the Government of Malta;
"1992 Liability Protocol" means the Protocol of 1992, adopted at
London on the 27th November, 1992, amending the Liability
Convention. 
(2) In this Act and in any regulations made thereunder, if there
is any conflict between the English and Maltese text, the English
text shall prevail.
(3) Unless the context otherwise requires, words and
expressions used in this Act shall have the same meaning assigned
to them in the Conventions. 
Accession of 
Conventions and 
denunciation of the 
Fund Convention 
and the Liability 
Convention.
3. For the purposes of any law thereto applicable the
Government of Malta is hereby authorised to accede to the 1992
Fund Protocol and the 1992 Liability Protocol and to denounce the
Fund Convention and the Liability Convention thus becoming a
party to the 1992 Fund Convention and the 1992 Liability
Convention.
Certain provisions 
of the 1992 
Liability 
Convention given 
force of law in 
Malta.
4. (1) Subject to the provisions of sub-articles (2) to (5) of
this article and notwithstanding the provisions of any other law,
those provisions of the 1992 Liability Convention, contained in the
First Schedule to this Act, shall form part of and be enforceable as
part of the Law of Malta. 
(2) Where any action is being brought in Malta in terms of the
provisions of the 1992 Liability Convention any reference in that
convention to "the Court", or to "the Court or other competent
authority", shall in each case be read and construed as reference to
the Civil Court, First Hall. 
Cap. 12.
(3) Where pollution damage, resulting from an incident, has
been sustained in Malta, including the territorial waters of Malta
and any exclusive economic zone of Malta as may be established in
accordance with international law or similar area determined by
Malta in accordance with international law, including the waters
enclosed in Malta’s contiguous zone claim and the waters
superjacent to Malta’s continental shelf claim, or if measures have
been taken to prevent or minimise such damage in that area, action
for compensation under the provisions of the 1992 Liability
Convention shall be brought in Malta before the Civil Court, First
Hall, by presenting a claim before such Court. Such a claim shall be
instituted in accordance with subtitle III of Title VIII of Part I of
Book Second of the Code of Organization and Civil Procedure: 
Provided that where any such exclusive economic zone or
any such similar area has been established by Malta, the Minister
shall by Order in the Gazette prescribe that the provisions of this
Act shall also apply to such exclusive economic zone or such
similar area as may be established in such Order. 
OIL POLLUTION (LIABILITY AND COMPENSATION) g CAP. 412.  3
(4) The Civil Court, First Hall shall determine the distribution
of the limitation fund, and where such fund is insufficient to satisfy
the claims of those who are entitled to compensation, the amount of
compensation of each claimant shall be reduced  pro rata . 
(5) The appropriate authority for the purpose of issuing a
certificate of insurance referred to in paragraph 2 of article VII of
the 1992 Liability Convention, in respect of Maltese ships shall be
the Registrar-General who shall for the purpose of paragraph 6 of
Article VII of that convention and subject to the provisions of the
same convention and of any regulations made under the Act
determine the conditions of issue and validity of such certificate
and, in respect of ships flying the flag of a state not party to the
1992 Liability Convention shall be the said Registrar-General who
shall have such powers as aforesaid or the appropriate authority of
a state party to the convention in accordance with the provisions
thereof.
Certain provisions 
of the 1992 Fund 
Convention given 
force of law in 
Malta.
5. (1) Subject to the provisions of sub-articles (2) to (6) of
this article, those provisions of the 1992 Fund Convention,
contained in the Second Schedule to this Act, shall form part of and
be enforceable as part of the Law of Malta. 
(2) Any person who in a calendar year has received
contributing oil so as to be liable to contribute to the IOPC Fund
pursuant to article 10 of the 1992 Fund Convention, shall, not later
than the 1st March of the following year, inform the Minister of the
quantity of such oil received by him. 
(3) The Minister shall, at a time and in the manner prescribed
in the Internal Regulations of the IOPC Fund, communicate the
information mentioned in paragraph 2 of article 15 of the 1992
Fund Convention to the Director of the IOPC Fund. 
(4) ( a ) For the purposes of this sub-article "associated person"
means a company or other body corporate which in
either case is another company’s subsidiary, associate
or holding company, or is the manager of or managed
by, or otherwise controls or is controlled by that body
corporate or a subsidiary or associate of that body
corporate’s holding company - and associate of a body
corporate means a body corporate being the subsidiary
of the same holding company. 
( b ) Any person having received in a calendar year
contributing oil in ports or other installations in Malta
in the manner specified in sub-paragraphs ( a ) and ( b )
of paragraph 1 of article 10 of the 1992 Fund
Convention in total quantities exceeding 150,000
tonnes shall pay contributions to the IOPC Fund in
accordance with articles 10, 12 and 13 of that
convention in the amount and by the date determined
by the IOPC Fund Assembly:
Provided that, notwithstanding that the quantity
received in Malta in a calendar year by any such person
does not exceed 150,000 tonnes but when aggregated
with the quantity of contributing oil received in the
4 g CAP. 412. OIL POLLUTION (LIABILITY AND COMPENSATION)
same calendar year in Malta by any associated person
or persons exceeds 150,000 tonnes, such person shall
pay contributions in respect of the actual quantity
received by him. 
(5) Where pollution damage resulting from an incident has
been sustained in Malta, including the territorial waters of Malta
and any area determined by an Order of the Minister made for the
purposes of the proviso to article 4(3) of this Act, or if measures
have been taken to prevent or minimise such damage in that area,
any action against the IOPC Fund for compensation under article 4
of the 1992 Fund Convention shall be brought in Malta before the
Civil Court, First Hall.   
(6) The notification to the IOPC Fund under paragraph 6 of
article 7 of the 1992 Fund Convention shall be made by means of a
judicial act against the IOPC Fund and notified in the office of the
Minister. 
(7) The IOPC Fund shall be entitled to take action against
defaulting contributors before the Civil Court, First Hall.
Procedure. 6. Notwithstanding the provisions of any other law - 
( a ) the Civil Court, First Hall shall have jurisdiction to try
and determine cases and actions that in accordance
with this Act are to be brought before it;  
( b ) when a written pleading or other judicial act is to be
filed against the IOPC Fund, it shall be sufficient if in
such pleading or act there is designated the IOPC Fund
and it shall not be necessary in such pleading or act to
name the office or the name of the person for the time
being holding the office having, in accordance with the
constitution of the IOPC Fund, the judicial
representation of that Fund;
( c ) the pleadings and acts referred to in paragraph ( b ) of
this article shall be notified at the office of the
Minister who shall within   five working days transmit
the same to the headquarters of the IOPC Fund through
the Ministry responsible for foreign affairs; 
( d ) all judicial terms for the filing of any written pleadings
or other acts by the IOPC Fund shall be extended by
five working days and no such times may be abridged
to less than five working days.
Power to make 
regulations.
7. (1) Without prejudice to the powers conferred by article 8
of this Act, the Minister may make regulations, rules or orders, or
give instructions, as are necessary for carrying into effect of the
provisions of the 1992 Liability Convention or the 1992 Fund
Convention.
(2) Any power conferred on the Minister by this Act to make
regulations, rules or orders or to give instructions, shall include
power -
( a ) to vary, alter, substitute or repeal any such regulation,
rule, order or instruction, without prejudice to the
OIL POLLUTION (LIABILITY AND COMPENSATION) g CAP. 412.  5
making of a new regulation, rule or order, or the giving
of a new instruction; 
( b ) to prescribe that any person liable to make any
contribution under this Act shall give such security for
the payment thereof as may be prescribed;
( c ) to make such transitional or other incidental or
supplementary provision as may appear to the Minister
to be appropriate; 
( d ) to prescribe anything that may be or is to be prescribed
under this Act. 
(3) Regulations, rules and orders made under any of the
provisions of this Act, may be made in the English language only.
Language and 
amendment of 
Schedules.
8. (1) The Schedules to this Act shall be in the English
language only, and such text shall apply also to the Maltese text of
this Act. 
(2) The Minister may by regulations amend, add to, vary,
revoke or substitute the Schedules to this Act to conform with any
amendments to the 1992 Liability Convention or the 1992 Fund
Convention, made in accordance with the said Conventions and
accepted by the Government of Malta and may by any such
regulations alter the reference in any article of this Act to any
provision of the 1992 Liability Convention or the 1992 Fund
Convention by a reference to such provision of the convention
which in accordance with any amendment thereto accepted by the
Government of Malta replaces such provision. 
6 g CAP. 412. OIL POLLUTION (LIABILITY AND COMPENSATION)
Text of articles I to XI of the International Convention on Civil Liability for Oil 
Pollution Damage, 1992
Article I
For the purposes of this Convention:
1. "Ship" means any sea-going vessel and seaborne craft of any type
whatsoever constructed or adapted for the carriage of oil in bulk as cargo, provided
that a ship capable of carrying oil and other cargoes shall be regarded as a ship only
when it is actually carrying oil in bulk as cargo and during any voyage following
such carriage unless it is proved that it has no residues of such carriage of oil in bulk
aboard.
2. "Person" means any individual or partnership or any public or private body,
whether corporate or not, including a State or any of its constituent subdivisions.
3. "Owner" means the person or persons registered as the owner of the ship or,
in the absence of registration, the person or persons owning the ship. However in the
case of a ship owned by a State and operated by a company which in that State is
registered as the ship’s operator, "owner" shall mean such company.
4. "State of the ship’s registry" means in relation to registered ships the State
of registration of the ship, and in relation to unregistered ships the State whose flag
the ship is flying.
5. "Oil" means any persistent hydrocarbon mineral oil such as crude oil, fuel
oil, heavy diesel oil and lubricating oil, whether carried on board a ship as cargo or
in the bunkers of such a ship.
6. "Pollution damage" means:
( a ) loss or damage caused outside the ship by contamination resulting from
the escape or discharge of oil from the ship, wherever such escape or
discharge may occur, provided that compensation for impairment of the
environment other than loss of profit from such impairment shall be
limited to costs of reasonable measures of reinstatement actually
undertaken or to be undertaken;
( b ) the costs of preventive measures and further loss or damage caused by
preventive measures.
7. "Preventive measures" means any reasonable measures taken by any person
after an incident has occurred to prevent or minimize pollution damage.
8. "Incident" means any occurrence, or series of occurrences having the same
origin, which causes pollution damage or creates a grave and imminent threat of
causing such damage.
9. "Organization" means the International Maritime Organization.
10. "1969 Liability Convention" means the International Convention on Civil
Liability for Oil Pollution Damage, 1969. For States Parties to the Protocol of 1976
to that Convention, the term shall be deemed to include the 1969 Liability
Convention as amended by that Protocol.
Amended by:
L.N. 223 of 2003. FIRST SCHEDULE(Articles 4 and 8)
OIL POLLUTION (LIABILITY AND COMPENSATION) g CAP. 412.  7
Article II
This Convention shall apply exclusively:
( a ) to pollution damage caused:
(i) in the territory, including the territorial sea, of a Contracting
State, and 
(ii) in the exclusive economic zone of a Contracting State, established
in accordance with international law, or, if a Contracting State has
not established such a zone, in an area beyond and adjacent to the
territorial sea of that State determined by that State in accordance
with international law and extending not more than 200 nautical
miles from the baselines from which the breadth of its territorial
sea is measured;
( b ) to preventive measures, wherever taken, to prevent or minimize such
damage.
Article III
1. Except as provided in paragraphs 2 and 3 of this Article, the owner of a ship
at the time of an incident, or, where the incident consists of a series of occurrences,
at the time of the first such occurrence, shall be liable for any pollution damage
caused by the ship as a result of the incident.
2. No liability for pollution damage shall attach to the owner if he proves that
the damage:
( a ) resulted from an act of war, hostilities, civil war, insurrection or a
natural phenomenon of an exceptional, inevitable and irresistible
character, or
( b ) was wholly caused by an act or omission done with intent to cause
damage by a third party, or
( c ) was wholly caused by the negligence or other wrongful act of any
Government or other authority responsible for the maintenance of lights
or other navigational aids in the exercise of that function.
3. If the owner proves that the pollution damage resulted wholly or partially
either from an act or omission done with intent to cause damage by the person who
suffered the damage or from the negligence of that person, the owner may be
exonerated wholly or partially from his liability to such person.
4. No claim for compensation for pollution damage may be made against the
owner otherwise than in accordance with this Convention. Subject to paragraph 5 of
this Article, no claim for compensation for pollution damage under this Convention
or otherwise may be made against:
( a ) the servants or agents of the owner or the members of the crew;
( b ) the pilot or any other person who, without being a member of the crew,
performs services for the ship;
( c ) any charterer (howsoever described, including a bareboat charterer),
manager or operator of the ship;
( d ) any person performing salvage operations with the consent of the owner
or on the instructions of a competent public authority;
( e ) any person taking preventive measures;
( f ) all servants or agents of persons mentioned in sub-paragraphs ( c ), ( d )
8 g CAP. 412. OIL POLLUTION (LIABILITY AND COMPENSATION)
and ( e );
unless the damage resulted from their personal act or omission, committed with the
intent to cause such damage, or recklessly and with knowledge that such damage
would probably result.
5. Nothing in this Convention shall prejudice any right of recourse of the
owner against third parties.
Article IV
When an incident involving two or more ships occurs and pollution damage results
therefrom, the owners of all the ships concerned, unless exonerated under Article III,
shall be jointly and severally liable for all such damage which is not reasonably
separable.
Article V
1. The owner of a ship shall be entitled to limit his liability under this
Convention in respect of any one incident to an aggregate amount calculated as
follows:
( a ) 4,510,000 units of account for a ship not exceeding 5,000 units of
tonnage;
( b ) for a ship with a tonnage in excess thereof, for each additional unit of
tonnage, 631 units of account in addition to the amount mentioned in
sub-paragraph ( a );
provided, however, that this aggregate amount shall not in any event exceed
89,770,000 units of account.
2. The owner shall not be entitled to limit his liability under this Convention if
it is proved that the pollution damage resulted from his personal act or omission,
committed with the intent to cause such damage, or recklessly and with knowledge
that such damage would probably result.
3. For the purpose of availing himself of the benefit of limitation provided for
in paragraph 1 of this Article the owner shall constitute a fund for the total sum
representing the limit of his liability with the Court or other competent authority of
any one of the Contracting States in which action is brought under Article IX or, if
no action is brought, with any Court or other competent authority in any one of the
Contracting States in which an action can be brought under Article IX. The fund can
be constituted either by depositing the sum or by producing a bank guarantee or
other guarantee, acceptable under the legislation of the Contracting State where the
fund is constituted, and considered to be adequate by the Court or other competent
authority.
4. The fund shall be distributed among the claimants in proportion to the
amounts of their established claims.
5. If before the fund is distributed the owner or any of his servants or agents or
any person providing him insurance or other financial security has as a result of the
incident in question, paid compensation for pollution damage, such person shall, up
to the amount he has paid, acquire by subrogation the rights which the person so
compensated would have enjoyed under this Convention.
6. The right of subrogation provided for in paragraph 5 of this Article may also
be exercised by a person other than those mentioned therein in respect of any amount
of compensation for pollution damage which he may have paid but only to the extent
OIL POLLUTION (LIABILITY AND COMPENSATION) g CAP. 412.  9
that such subrogation is permitted under the applicable national law.
7. Where the owner or any other person establishes that he may be compelled
to pay at a later date in whole or in part any such amount of compensation, with
regard to which such person would have enjoyed a right of subrogation under
paragraphs 5 or 6 of this Article, had the compensation been paid before the fund
was distributed, the Court or other competent authority of the State where the fund
has been constituted may order that a sufficient sum shall be provisionally set aside
to enable such person at such later date to enforce his claim against the fund.
8. Claims in respect of expenses reasonably incurred or sacrifices reasonably
made by the owner voluntarily to prevent or minimize pollution damage shall rank
equally with other claims against the fund.
9 ( a ) The "unit of account" referred to in paragraph 1 of this Article is the
Special Drawing Right as defined by the International Monetary Fund.
The amounts mentioned in paragraph 1 shall be converted into national
currency on the basis of the value of that currency by reference to the
Special Drawing Right on the date of the constitution of the fund
referred to in paragraph 3. The value of the national currency, in terms
of the Special Drawing Right, of a Contracting State which is a member
of the International Monetary Fund shall be calculated in accordance
with the method of valuation applied by the International Monetary
Fund in effect on the date in question for its operations and transactions.
The value of the national currency, in terms of the Special Drawing
Right, of a Contracting State which is not a member of the International
Monetary Fund shall be calculated in a manner determined by that State.
9 ( b ) Nevertheless, a Contracting State which is not a member of the
International Monetary Fund and whose law does not permit the
application of the provisions of paragraph 9 ( a ) may, at the time of
ratification, acceptance, approval of or accession to this Convention or
at any time thereafter, declare that the unit of account referred to in
paragraph 9 ( a ) shall be equal to 15 gold francs. The gold franc referred
to in this paragraph corresponds to sixty-five and a half milligrammes of
gold of millesimal fineness nine hundred. The conversion of the gold
franc into the national currency shall be made according to the law of
the State concerned.
9 ( c ) The calculation mentioned in the last sentence of paragraph 9 ( a ) and the
conversion mentioned in paragraph 9 ( b ) shall be made in such manner
as to express in the national currency of the Contracting State as far as
possible the same real value for the amounts in paragraph 1 as would
result from the application of the first three sentences of paragraph 9
( a ). Contracting States shall communicate to the depositary the manner
of calculation pursuant to paragraph 9 ( a ), or the result of the conversion
in paragraph 9 ( b ) as the case may be, when depositing an instrument of
ratification, acceptance, approval of or accession to this Convention and
whenever there is a change in either.
10. For the purpose of this Article the ship’s tonnage shall be the gross tonnage
calculated in accordance with the tonnage measurement regulations contained in
Annex I of the International Convention on Tonnage Measurement of Ships, 1969.
11. The insurer or other person providing financial security shall be entitled to
constitute a fund in accordance with this Article on the same conditions and having
the same effect as if it were constituted by the owner. Such a fund may be
constituted even if, under the provisions of paragraph 2, the owner is not entitled to
10 g CAP. 412. OIL POLLUTION (LIABILITY AND COMPENSATION)
limit his liability, but its constitution shall in that case not prejudice the rights of any
claimant against the owner.
Article VI
1. Where the owner, after an incident, has constituted a fund in accordance
with ArticleV, and is entitled to limit his liability,
( a ) no person having a claim for pollution damage arising out of that
incident shall be entitled to exercise any right against any other assets of
the owner in respect of such claim;
( b ) the Court or other competent authority of any Contracting State shall
order the release of any ship or other property belonging to the owner
which has been arrested in respect of a claim for pollution damage
arising out of that incident, and shall similarly release any bail or other
security furnished to avoid such arrest.
2. The foregoing shall, however, only apply if the claimant has access to the
Court administering the fund and the fund is actually available in respect of his
claim.
Article VII
1. The owner of a ship registered in a Contracting State and carrying more than
2,000 tons of oil in bulk as cargo shall be required to maintain insurance or other
financial security, such as the guarantee of a bank or a certificate delivered by an
international compensation fund, in the sums fixed by applying the limits of liability
prescribed in Article†V, paragraph 1 to cover his liability for pollution damage
under this Convention.
2. A certificate attesting that insurance or other financial security is in force in
accordance with the provisions of this Convention shall be issued to each ship after
the appropriate authority of a Contracting State has determined that the requirements
of paragraph 1 have been complied with. With respect to a ship registered in a
Contracting State such certificate shall be issued or certified by the appropriate
authority of the State of the ship’s registry; with respect to a ship not registered in a
Contracting State it may be issued or certified by the appropriate authority of any
Contracting State. This certificate shall be in the form of the annexed model and
shall contain the following particulars:
( a ) name of ship and port of registration;
( b ) name and principal place of business of owner;
( c ) type of security;
( d ) name and principal place of business of insurer or other person giving
security and, where appropriate, place of business where the insurance
or security is established;
( e ) period of validity of certificate which shall not be longer than the period
of validity of the insurance or other security.
3. The certificate shall be in the official language or languages of the issuing
State. If the language used is neither English nor French, the text shall include a
translation into one of these languages.
4. The certificate shall be carried on board the ship and a copy shall be
deposited with the authorities who keep the record of the ship’s registry or, if the
ship is not registered in a Contracting State, with the authorities of the State issuing
OIL POLLUTION (LIABILITY AND COMPENSATION) g CAP. 412.  11
or certifying the certificate.
5. An insurance or other financial security shall not satisfy the requirements of
this Article if it can cease, for reasons other than the expiry of the period of validity
of the insurance or security specified in the certificate under paragraph 2 of this
Article, before three months have elapsed from the date on which notice of its
termination is given to the authorities referred to in paragraph 4 of this Article,
unless the certificate has been surrendered to these authorities or a new certificate
has been issued within the said period. The foregoing provisions shall similarly
apply to any modification which results in the insurance or security no longer
satisfying the requirements of this Article.
6. The State of registry shall, subject to the provisions of this Article,
determine the conditions of issue and validity of the certificate.
7. Certificates issued or certified under the authority of a Contracting State in
accordance with paragraph 2 shall be accepted by other Contracting States for the
purposes of this Convention and shall be regarded by other Contracting States as
having the same force as certificates issued or certified by them even if issued or
certified in respect of a ship not registered in a Contracting State. A Contracting
State may at any time request consultation with the issuing or certifying State should
it believe that the insurer or guarantor named in the certificate is not financially
capable of meeting the obligations imposed by this Convention.
8. Any claim for compensation for pollution damage may be brought directly
against the insurer or other person providing financial security for the owner’s
liability for pollution damage. In such case the defendant may, even if the owner is
not entitled to limit his liability according to Article V, paragraph 2, avail himself of
the limits of liability prescribed in Article V, paragraph 1. He may further avail
himself of the defences (other than the bankruptcy or winding up of the owner)
which the owner himself would have been entitled to invoke. Furthermore, the
defendant may avail himself of the defence that the pollution damage resulted from
the wilful misconduct of the owner himself, but the defendant shall not avail himself
of any other defence which he might have been entitled to invoke in proceedings
brought by the owner against him. The defendant shall in any event have the right to
require the owner to be joined in the proceedings.
9. Any sums provided by insurance or by other financial security maintained in
accordance with paragraph 1 of this Article shall be available exclusively for the
satisfaction of claims under this Convention.
10. A Contracting State shall not permit a ship under its flag to which this
Article applies to trade unless a certificate has been issued under paragraph 2 or 12
of this Article.
11. Subject to the provisions of this Article, each Contracting State shall ensure,
under its national legislation, that insurance or other security to the extent specified
in paragraph 1 of this Article is in force in respect of any ship, wherever registered,
entering or leaving a port in its territory, or arriving at or leaving an off-shore
terminal in its territorial sea, if the ship actually carries more than 2,000 tons of oil
in bulk as cargo.
12. If insurance or other financial security is not maintained in respect of a ship
owned by a Contracting State, the provisions of this Article relating thereto shall not
be applicable to such ship, but the ship shall carry a certificate issued by the
appropriate authorities of the State of the ship’s registry stating that the ship is
owned by that State and that the ship’s liability is covered within the limits
prescribed by Article V, paragraph 1. Such a certificate shall follow as closely as
practicable the model prescribed by paragraph 2 of this Article.
12 g CAP. 412. OIL POLLUTION (LIABILITY AND COMPENSATION)
Article VIII
Rights of compensation under this Convention shall be extinguished unless
an action is brought thereunder within three years from the date when the damage
occurred. However, in no case shall an action be brought after six years from the
date of the incident which caused the damage. Where this incident consists of a
series of occurrences, the six years’ period shall run from the date of the first such
occurrence.
Article IX
1. Where an incident has caused pollution damage in the territory, including
the territorial sea or an area referred to in Article II, of one or more Contracting
States or preventive measures have been taken to prevent or minimize pollution
damage in such territory including the territorial sea or area, actions for
compensation may only be brought in the Courts of any such Contracting State or
States. Reasonable notice of any such action shall be given to the defendant.
2. Each Contracting State shall ensure that its Courts possess the necessary
jurisdiction to entertain such actions for compensation.
3. After the fund has been constituted in accordance with Article V the Courts
of the State in which the fund is constituted shall be exclusively competent to
determine all matters relating to the apportionment and distribution of the fund.
Article X
1. Any judgement given by a Court with jurisdiction in accordance with Article
IX which is enforceable in the State of origin where it is no longer subject to
ordinary forms of review, shall be recognized in any Contracting State, except:
( a ) where the judgement was obtained by fraud; or
( b ) where the defendant was not given reasonable notice and a fair
opportunity to present his case.
2. A judgement recognized under paragraph 1 of this Article shall be
enforceable in each Contracting State as soon as the formalities required in that State
have been complied with. The formalities shall not permit the merits of the case to
be re-opened.
Article XI
1. The provisions of this Convention shall not apply to warships or other ships
owned or operated by a State and used, for the time being, only on government non-
commercial service.
2. With respect to ships owned by a Contracting State and used for commercial
purposes, each State shall be subject to suit in the jurisdictions set forth in Article IX
and shall waive all defences based on its status as a sovereign State.
OIL POLLUTION (LIABILITY AND COMPENSATION) g CAP. 412.  13
ANNEX
CERTIFICATE OF INSURANCE OR OTHER FINANCIAL
SECURITY IN RESPECT OF CIVIL LIABILITY FOR
OIL POLLUTION DAMAGE
Issued in accordance with the provisions of Article VII of the International
Convention on Civil Liability for Oil Pollution Damage, 1992
.
This is to certify that there is in force in respect of the above-named ship a policy
of insurance or other financial security satisfying the requirements of Article VII of
the International Convention on Civil Liability for Oil Pollution Damage, 1992.
At ......................................................  On ......................................................
(Place)   (Date)
...............................................................
Signature and Title of
issuing or certifying official
Explanatory Notes:
1. If desired, the designation of the State may include a reference to the
competent public authority of the country where the certificate is issued.
2. If the total amount of security has been furnished by more than one source,
the amount of each of them should be indicated.
3. If security is furnished in several forms, these should be enumerated.
4. The entry "Duration of Security" must stipulate the date on which such
security takes effect.
Name of ship Distinctive
number or letters
Port of registry Name and
address of owner
Type of Security ……………………………………....….........……………………
……………………………………………………..………………....………………
Duration of Security …………………………………………………………………
Name and Address of the Insurer(s) and/or Guarantor(s)
Name …………………………………..……………………………..………………
Address …………………………….....…………………………………...…………
This certificate is valid until ……….........……………………….…………
Issued or certified by the Government of …………………………………….
....……………………………………………………………………………………
(Full designation of the State)
14 g CAP. 412. OIL POLLUTION (LIABILITY AND COMPENSATION)
Text of articles 1 to 4, 6 to 10 and 12 to 15 of the International Convention on the
Establishment of an International Fund for Compensation for Oil Pollution Damage,
1992.
Article 1
For the purposes of this Convention:
1. "1992 Liability Convention" means the International Convention on Civil
Liability for Oil Pollution Damage, 1992.
1 bis. "1971 Fund Convention" means the International Convention on the
Establishment of an International Fund for Compensation for Oil Pollution Damage,
1971. For States Parties to the Protocol of 1976 to that Convention, the term shall be
deemed to include the 1971 Fund Convention as amended by that Protocol.
2. "Ship", "Person", "Owner", "Oil", "Pollution Damage", "Preventive
Measures", "Incident", and "Organization" have the same meaning as in Article I of
the 1992 Liability Convention.
3. "Contributing Oil" means crude oil and fuel oil as defined in sub-paragraphs
( a ) and ( b ) below:
( a ) "Crude Oil" means any liquid hydrocarbon mixture occurring naturally
in the earth whether or not treated to render it suitable for
transportation. It also includes crude oils from which certain distillate
fractions have been removed (sometimes referred to as "topped crudes")
or to which certain distillate fractions have been added (sometimes
referred to as "spiked" or "reconstituted" crudes).
( b ) "Fuel Oil" means heavy distillates or residues from crude oil or blends
of such materials intended for use as a fuel for the production of heat or
power of a quality equivalent to the "American Society for Testing and
Materials’ Specification for Number Four Fuel Oil (Designation D 396-
69)", or heavier.
4. "Unit of account" has the same meaning as in Article V, paragraph 9, of the
1992 Liability Convention.
5. "Ship’s tonnage" has the same meaning as in Article V, paragraph 10, of the
1992 Liability Convention.
6. "Ton", in relation to oil, means a metric ton.
7. "Guarantor" means any person providing insurance or other financial
security to cover an owner’s liability in pursuance of Article VII, paragraph 1, of the
1992 Liability Convention.
8. "Terminal Installation" means any site for the storage of oil in bulk which is
capable of receiving oil from waterborne transportation, including any facility
situated off-shore and linked to such site.
9. Where an incident consists of a series of occurrences, it shall be treated as
having occurred on the date of the first such occurrence.
Amended by:
L.N. 223 of 2003. SECOND SCHEDULE (Articles 5 and 8)
OIL POLLUTION (LIABILITY AND COMPENSATION) g CAP. 412.  15
Article 2
1. An International Fund for compensation for pollution damage, to be named
"The International Oil Pollution Compensation Fund 1992" and hereinafter referred
to as "the Fund", is hereby established with the following aims:
( a ) to provide compensation for pollution damage to the extent that the
protection afforded by the 1992 Liability Convention is inadequate;
( b ) to give effect to the related purposes set out in this Convention.
2. The Fund shall in each Contracting State be recognized as a legal person
capable under the laws of that State of assuming rights and obligations and of being
a party in legal proceedings before the courts of that State. Each Contracting State
shall recognize the Director of the Fund (hereinafter referred to as "The Director") as
the legal representative of the Fund.
Article 3
This Convention shall apply exclusively:
( a ) to pollution damage caused:
(i) in the territory, including the territorial sea, of a Contracting
State, and 
(ii) in the exclusive economic zone of a Contracting State, established
in accordance with international law, or, if a Contracting State has
not established such a zone, in an area beyond and adjacent to the
territorial sea of that State determined by that State in accordance
with international law and extending not more than 200 nautical
miles from the baselines from which the breadth of its territorial
sea is measured;
( b ) to preventive measures, wherever taken, to prevent or minimize such
damage.
Compensation
Article 4
1. For the purpose of fulfilling its function under Article 2, paragraph 1( a ), the
Fund shall pay compensation to any person suffering pollution damage if such
person has been unable to obtain full and adequate compensation for the damage
under the terms of the 1992 Liability Convention,
( a ) because no liability for the damage arises under the 1992 Liability
Convention;
( b ) because the owner liable for the damage under the 1992 Liability
Convention is financially incapable of meeting his obligations in full
and any financial security that may be provided under Article VII of
that Convention does not cover or is insufficient to satisfy the claims for
compensation for the damage; an owner being treated as financially
incapable of meeting his obligations and a financial security being
treated as insufficient if the person suffering the damage has been
unable to obtain full satisfaction of the amount of compensation due
under the 1992 Liability Convention after having taken all reasonable
steps to pursue the legal remedies available to him;
( c ) because the damage exceeds the owner’s liability under the 1992
Liability Convention as limited pursuant to Article V, paragraph 1, of
16 g CAP. 412. OIL POLLUTION (LIABILITY AND COMPENSATION)
that Convention or under the terms of any other international
Convention in force or open for signature, ratification or accession at
the date of this Convention.
Expenses reasonably incurred or sacrifices reasonably made by the owner
voluntarily to prevent or minimize pollution damage shall be treated as pollution
damage for the purposes of this Article.
2. The Fund shall incur no obligation under the preceding paragraph if:
( a ) it proves that the pollution damage resulted from an act of war,
hostilities, civil war or insurrection or was caused by oil which has
escaped or been discharged from a warship or other ship owned or
operated by a State and used, at the time of the incident, only on
Government non-commercial service; or
( b ) the claimant cannot prove that the damage resulted from an incident
involving one or more ships.
3. If the Fund proves that the pollution damage resulted wholly or partially
either from an act or omission done with the intent to cause damage by the person
who suffered the damage or from the negligence of that person, the Fund may be
exonerated wholly or partially from its obligation to pay compensation to such
person. The Fund shall in any event be exonerated to the extent that the shipowner
may have been exonerated under Article III, paragraph 3, of the 1992 Liability
Convention. However, there shall be no such exoneration of the Fund with regard to
preventive measures.
4. ( a ) Except as otherwise provided in sub-paragraphs ( b ) and ( c ) of this
paragraph, the aggregate amount of compensation payable by the Fund
under this Article shall in respect of any one incident be limited, so that
the total sum of that amount and the amount of compensation actually
paid under the 1992 Liability Convention for pollution damage within
the scope of application of this Convention as defined in Article 3 shall
not exceed 203,000,000 units of account.
( b ) Except as otherwise provided in sub-paragraph ( c ), the aggregate
amount of compensation payable by the Fund under this Article for
pollution damage resulting from a natural phenomenon of an
exceptional, inevitable and irresistible character shall not exceed
203,000,000 units of account.
( c ) The maximum amount of compensation referred to in sub-paragraphs
( a ) and ( b ) shall be 300,740,000 units of account with respect to any
incident occurring during any period when there are three Parties to this
Convention in respect of which the combined relevant quantity of
contributing oil received by persons in the territories of such Parties,
during the preceding calendar year, equalled or exceeded 600 million
tons.
( d ) Interest accrued on a fund constituted in accordance with Article V,
paragraph 3, of the 1992 Liability Convention, if any, shall not be taken
into account for the computation of the maximum compensation payable
by the Fund under this Article.
( e ) The amounts mentioned in this Article shall be converted into national
currency on the basis of the value of that currency by reference to the
Special Drawing Right on the date of the decision of the Assembly of
the Fund as to the first date of payment of compensation.
OIL POLLUTION (LIABILITY AND COMPENSATION) g CAP. 412.  17
5. Where the amount of established claims against the Fund exceeds the
aggregate amount of compensation payable under paragraph 4, the amount available
shall be distributed in such a manner that the proportion between any established
claim and the amount of compensation actually recovered by the claimant under this
Convention shall be the same for all claimants.
6. The Assembly of the Fund may decide that, in exceptional cases,
compensation in accordance with this Convention can be paid even if the owner of
the ship has not constituted a fund in accordance with Article V, paragraph 3, of the
1992 Liability Convention. In such case paragraph 4 ( e ) of this Article applies
accordingly.
7. The Fund shall, at the request of a Contracting State, use its good offices as
necessary to assist that State to secure promptly such personnel, material and
services as are necessary to enable the State to take measures to prevent or mitigate
pollution damage arising from an incident in respect of which the Fund may be
called upon to pay compensation under this Convention.
8. The Fund may on conditions to be laid down in the Internal Regulations
provide credit facilities with a view to the taking of preventive measures against
pollution damage arising from a particular incident in respect of which the Fund may
be called upon to pay compensation under this Convention.
Article 6
Rights to compensation under Article 4 shall be extinguished unless an action is
brought thereunder or a notification has been made pursuant to Article 7, paragraph
6, within three years from the date when the damage occurred. However, in no case
shall an action be brought after six years from the date of the incident which caused
the damage.
Article 7
1. Subject to the subsequent provisions of this Article, any action against the
Fund for compensation under Article 4 of this Convention shall be brought only
before a court competent under Article IX of the 1992 Liability Convention in
respect of actions against the owner who is or who would, but for the provisions of
Article III, paragraph 2, of that Convention, have been liable for pollution damage
caused by the relevant incident.
2. Each Contracting State shall ensure that its courts possess the necessary
jurisdiction to entertain such actions against the Fund as are referred to in paragraph
1.
3. Where an action for compensation for pollution damage has been brought
before a court competent under Article IX of the 1992 Liability Convention against
the owner of a ship or his guarantor, such court shall have exclusive jurisdictional
competence over any action against the Fund for compensation under the provisions
of Article 4 of this Convention in respect of the same damage. However, where an
action for compensation for pollution damage under the 1992 Liability Convention
has been brought before a court in a State Party to the 1992 Liability Convention but
not to this Convention, any action against the Fund under Article 4 of this
Convention shall at the option of the claimant be brought either before a court of the
State where the Fund has its headquarters or before any court of a State Party to this
Convention competent under Article IX of the 1992 Liability Convention.
4. Each Contracting State shall ensure that the Fund shall have the right to
intervene as a party to any legal proceedings instituted in accordance with Article IX
18 g CAP. 412. OIL POLLUTION (LIABILITY AND COMPENSATION)
of the 1992 Liability Convention before a competent court of that State against the
owner of a ship or his guarantor.
5. Except as otherwise provided in paragraph 6, the Fund shall not be bound by
any judgement or decision in proceedings to which it has not been a party or by any
settlement to which it is not a party.
6. Without prejudice to the provisions of paragraph 4, where an action under
the 1992 Liability Convention for compensation for pollution damage has been
brought against an owner or his guarantor before a competent court in a Contracting
State, each party to the proceedings shall be entitled under the national law of that
State to notify the Fund of the proceedings. Where such notification has been made
in accordance with the formalities required by the law of the court seized and in such
time and in such a manner that the Fund has in fact been in a position effectively to
intervene as a party to the proceedings, any judgement rendered by the court in such
proceedings shall, after it has become final and enforceable in the State where the
judgement was given, become binding upon the Fund in the sense that the facts and
findings in that judgement may not be disputed by the Fund even if the Fund has not
actually intervened in the proceedings.
Article 8
Subject to any decision concerning the distribution referred to in Article 4,
paragraph 5, any judgement given against the Fund by a court having jurisdiction in
accordance with Article 7, paragraphs 1 and 3, shall, when it has become enforceable
in the State of origin and is in that State no longer subject to ordinary forms of
review, be recognized and enforceable in each Contracting State on the same
conditions as are prescribed in Article X of the 1992 Liability Convention.
Article 9
1. The Fund shall, in respect of any amount of compensation for pollution
damage paid by the Fund in accordance with Article 4, paragraph 1, of this
Convention, acquire by subrogation the rights that the person so compensated may
enjoy under the 1992 Liability Convention against the owner or his guarantor.
2. Nothing in this Convention shall prejudice any right of recourse or
subrogation of the Fund against persons other than those referred to in the preceding
paragraph. In any event the right of the Fund to subrogation against such person
shall not be less favourable than that of an insurer of the person to whom
compensation has been paid.
3. Without prejudice to any other rights of subrogation or recourse against the
Fund which may exist, a Contracting State or agency thereof which has paid
compensation for pollution damage in accordance with provisions of national law
shall acquire by subrogation the rights which the person so compensated would have
enjoyed under this Convention.
Contributions
Article 10
1. Annual contributions to the Fund shall be made in respect of each
Contracting State by any person who, in the calendar year referred to in Article 12,
paragraph 2( a ) or ( b ), has received in total quantities exceeding 150,000 tons:
( a ) in the ports or terminal installations in the territory of that State
contributing oil carried by sea to such ports or terminal installations;
and 
OIL POLLUTION (LIABILITY AND COMPENSATION) g CAP. 412.  19
( b ) in any installations situated in the territory of that Contracting State
contributing oil which has been carried by sea and discharged in a port
or terminal installation of a non-Contracting State, provided that
contributing oil shall only be taken into account by virtue of this sub-
paragraph on first receipt in a Contracting State after its discharge in
that non-Contracting State.
2. ( a ) For the purposes of paragraph 1, where the quantity of contributing oil
received in the territory of a Contracting State by any person in a
calendar year when aggregated with the quantity of contributing oil
received in the same Contracting State in that year by any associated
person or persons exceeds 150,000 tons, such person shall pay
contributions in respect of the actual quantity received by him
notwithstanding that that quantity did not exceed 150,000 tons.
( b ) "Associated person" means any subsidiary or commonly controlled
entity. The question whether a person comes within this definition shall
be determined by the national law of the State concerned.
Article 12
1. With a view to assessing the amount of annual contributions due, if any, and
taking account of the necessity to maintain sufficient liquid funds, the Assembly
shall for each calendar year make an estimate in the form of a budget of:
(i)  Expenditure
( a ) costs and expenses of the administration of the Fund in the relevant year
and any deficit from operations in preceding years;
( b ) payments to be made by the Fund in the relevant year for the
satisfaction of claims against the Fund due under Article 4, including
repayment on loans previously taken by the Fund for the satisfaction of
such claims, to the extent that the aggregate amount of such claims in
respect of any one incident does not exceed four million units of
account;
( c ) payments to be made by the Fund in the relevant year for the
satisfaction of claims against the Fund due under Article 4, including
repayments on loans previously taken by the Fund for the satisfaction of
such claims, to the extent that the aggregate amount of such claims in
respect of any one incident is in excess of four million units of account;
(ii)  Income
( a ) surplus funds from operations in preceding years, including any
interest;
( b ) annual contributions, if required to balance the budget;
( c ) any other income.
2. The Assembly shall decide the total amount of contributions to be levied. On
the basis of that decision, the Director shall, in respect of each Contracting State,
calculate for each person referred to in Article 10 the amount of his annual
contribution:
( a ) in so far as the contribution is for the satisfaction of payments referred
to in paragraph 1(i)( a ) and ( b ) on the basis of a fixed sum for each ton
of contributing oil received in the relevant State by such persons during
the preceding calendar year; and 
20 g CAP. 412. OIL POLLUTION (LIABILITY AND COMPENSATION)
( b ) in so far as the contribution is for the satisfaction of payments referred
to in paragraph 1(i)( c ) of this Article on the basis of a fixed sum for
each ton of contributing oil received by such person during the calendar
year preceding that in which the incident in question occurred, provided
that State was a Party to this Convention at the date of the incident.
3. The sums referred to in paragraph 2 above shall be arrived at by dividing the
relevant total amount of contributions required by the total amount of contributing
oil received in all Contracting States in the relevant year.
4. The annual contribution shall be due on the date to be laid down in the
Internal Regulations of the Fund. The Assembly may decide on a different date of
payment.
5. The Assembly may decide, under conditions to be laid down in the Financial
Regulations of the Fund, to make transfers between funds received in accordance
with Article 12.2( a ) and funds received in accordance with Article 12.2( b ).
Article 13
1. The amount of any contribution due under Article 12 and which is in arrears
shall bear interest at a rate which shall be determined in accordance with the Internal
Regulations of the Fund, provided that different rates may be fixed for different
circumstances.
2. Each Contracting State shall ensure that any obligation to contribute to the
Fund arising under this Convention in respect of oil received within the territory of
that State is fulfilled and shall take any appropriate measures under its law,
including the imposing of such sanctions as it may deem necessary, with a view to
the effective execution of any such obligation; provided, however, that such
measures shall only be directed against those persons who are under an obligation to
contribute to the Fund.
3. Where a person who is liable in accordance with the provisions of Articles
10 and 12 to make contributions to the Fund does not fulfil his obligations in respect
of any such contribution or any part thereof and is in arrear, the Director shall take
all appropriate action against such person on behalf of the Fund with a view to the
recovery of the amount due. However, where the defaulting contributor is manifestly
insolvent or the circumstances otherwise so warrant, the Assembly may, upon
recommendation of the Director, decide that no action shall be taken or continued
against the contributor.
Article 14
1. Each Contracting State may at the time when it deposits its instrument of
ratification or accession or at any time thereafter declare that it assumes itself
obligations that are incumbent under this Convention on any person who is liable to
contribute to the Fund in accordance with Article 10, paragraph 1, in respect of oil
received within the territory of that State. Such declaration shall be made in writing
and shall specify which obligations are assumed.
2. Where a declaration under paragraph 1 is made prior to the entry into force
of this Convention in accordance with Article 40, it shall be deposited with the
Secretary-General of the Organization who shall after the entry into force of the
Convention communicate the declaration to the Director.
3. A declaration under paragraph 1 which is made after the entry into force of
this Convention shall be deposited with the Director.
OIL POLLUTION (LIABILITY AND COMPENSATION) g CAP. 412.  21
4. A declaration made in accordance with this Article may be withdrawn by the
relevant State giving notice thereof in writing to the Director. Such notification shall
take effect three months after the Director’s receipt thereof.
5. Any State which is bound by a declaration made under this Article shall, in
any proceedings brought against it before a competent court in respect of any
obligation specified in the declaration, waive any immunity that it would otherwise
be entitled to invoke.
Article 15
1. Each Contracting State shall ensure that any person who receives
contributing oil within its territory in such quantities that he is liable to contribute to
the Fund appears on a list to be established and kept up to date by the Director in
accordance with the subsequent provisions of this Article.
2. For the purposes set out in paragraph 1, each Contracting State shall
communicate, at a time and in the manner to be prescribed in the Internal
Regulations, to the Director the name and address of any person who in respect of
that State is liable to contribute to the Fund pursuant to Article 10, as well as data on
the relevant quantities of contributing oil received by any such person during the
preceding calendar year. 
3. For the purposes of ascertaining who are, at any given time, the persons
liable to contribute to the Fund in accordance with Article 10, paragraph 1, and of
establishing, where applicable, the quantities of oil to be taken into account for any
such person when determining the amount of his contribution, the list shall be prima
facie evidence of the facts stated therein.
4. Where a Contracting State does not fulfil its obligations to submit to the
Director the communication referred to in paragraph 2 and this results in a financial
loss for the Fund, that Contracting State shall be liable to compensate the Fund for
such loss. The Assembly shall, on the recommendation of the Director, decide
whether such compensation shall be payable by that Contracting State.
