What are the exclusions and limitations under the International Convention on Civil Liability for Oil Pollution Damage?

The International Convention on Civil Liability for Oil Pollution Damage (CLC) provides a framework for the liability of shipowners and other entities for oil pollution from ships. In Louisiana, the CLC applies to ships registered with any of the member states of the convention, as well as vessels that carry oil for export from a port in a member state. The CLC has several exclusions and limitations on liability. For instance, the shipowner will not be liable in the event of an act of war, or for natural phenomena such as storms, earthquakes, or floods. Liability is also limited in the event of sabotage or other unlawful acts. In addition, the CLC places a limit on the amount of compensation that a shipowner is liable for in the event of a pollution incident. This amount is based on the tonnage of the ship in question, and varies depending on the state in which the ship is registered. The limit for ships registered in the United States is currently $1, 350 per gross ton of the vessel. Finally, the CLC imposes an overall limit on the overall liability of a shipowner in the event of an oil pollution incident. This overall limit is set at no more than 2.5 billion Special Drawing Rights (SDR) for any one incident—or the equivalent in other currencies. In order to be eligible for compensation under the CLC, the claim must be made within two years of the incident occurring. Claims must also be supported by evidence showing that the pollution was caused by a vessel, or that the vessel caused the pollution to be worse than it otherwise would have been.

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What are the exclusions and limitations under the International Convention on Civil Liability for Oil Pollution Damage?

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