Developing CLC and Fund Convention underpinned by IG Sample Clauses

Developing CLC and Fund Convention underpinned by IG. During the past several decades, oil pollution has been centralized as the key risk in the shipping industry followed by the increasing size of tankers. The landmark case of Torry Canyon141 in 1967 initiated international focus to make global compensation schemes for oil pollution damage, which resulted in the CLC of 1969 and the Fund Convention of 1971. Two combined conventions established channeling liability to the shipowner, its P&I insurer and the oil pollution fund financed by the oil companies. Furthermore, they were combined with some new protocols to form the revised version of 1992. The compensation regime of 1992 CLC and Fund Convention preliminarily satisfied chronological ascending liability, notwithstanding further measures were provoked by a second milestone incident of Erika142 in 1999. Following the sinking of Erika143, the international liability and compensation regime (1992 CLC and Fund Convention) relating to persistent oil spills from tankers was reviewed by the clubs and the International Oil Pollution Compensation Funds (IOPC).144 As the compromise between the IG and IOPC on the distribution of increasing liability, a new Supplementary Fund Protocol 2003 was approved and took effect from 2005 to “treble the amounts available for oil pollution compensation as compared with previous scheme.”145 Under the Supplementary Fund Protocol 2003, two agreements have been reached, namely, STOPIA 2006 and TOPIA 2006. On the side of the IG, a greater burden of oil pollution compensation is imposed by these two agreements. Minimum limit of the IG for small tankers under CLC is raised from SDR 4.5 million to SDR 20 million and 141 The Torrey Canyon was a supertanker capable of carrying a cargo of 120,000 tons of crude oil, which was shipwrecked off the western coast of Cornwall, England in March 1967 causing an environmental disaster. At that time, the tanker was the largest vessel ever to be wrecked. --xxxx://xx.xxxxxxxxx.xxx/wiki/Torrey_Canyon 142 Ibid. 129 143 Ibid. 129 144 Ibid. 86 p.181 145 Ibid. 1 p.198 50% of the compensation from the Supplementary Fund will be indemnified by the tanker-owner members of the IG.146 Also taking into account that the traditional “pay to be paid” rule is eroded by the prevailing direction action against the P&I insurer under CLC, the IG no doubt has over the years displayed flexibility and continues to play an unparalleled role in the increasing complex regime of oil pollution liability.