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

Under the International Convention on Civil Liability for Oil Pollution Damage (CLC), those responsible for an oil spill are held accountable for any damages caused as a result. The CLC sets out exclusions and limitations on the liability of those responsible for an oil spill. First, the CLC sets out the “Limitation Fund”—a fund that is available to pay compensation for any damages caused by a spill. This fund is established by states and is made up of contributions from the owners and operators of ships. Second, the CLC has exclusions that limit the amount of liability for those responsible for a spill. If the ship was carrying oil as cargo, then the owner is liable for up to 8 million units of account for each incident. If the ship is carrying a hazardous substance, then the owner is liable for up to 14 million units of account. The CLC also limits the maximum liability of the owner in cases of ships that had caused a collision or stranding. Finally, the CLC also has limitations on the amount of compensation that can be paid for damages in the event of an oil spill. The CLC limits the amount of compensation to the amount of damage caused, taking into account the "reasonable measures of prevention and mitigation," as well as the "gravity and duration" of the accident. In Tennessee, the CLC is codified under Title 57 and governs the responsibility of those responsible for an oil spill. The CLC sets out exclusions and limitations on the liability of those responsible for an oil spill, as well as the amount of compensation that can be paid for damages caused by the spill.

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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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