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 is a United Nations treaty that was adopted in 1969 to address the damages caused by sea based oil pollution. In Washington State, this treaty applies to any seagoing vessel that is registered in the state, or falls under the jurisdiction of the state. One of the key elements of this convention is the “exclusions and limitations” provision. This provision states that the ship’s owner is not liable for any costs incurred due to oil pollution caused by third-party activities. Those activities could include natural disasters, acts of war, civil unrest or any other activity judged to be beyond the owner’s control. The convention also places a limitation on the ship owner’s liability for any pollution caused. That limitation is set at a maximum of 500 million units of account, with each unit equal to a dollar value set in the treaty. As of 2021, the total value of 500 million units is about $6 billion. Finally, the treaty places a limitation on the amount of damages the ship owner can be held responsible for for any single incident. This is set at a maximum of sixty million units, which, as of 2021, is about $750 million. In summary, the International Convention on Civil Liability for Oil Pollution Damage places several exclusions and limitations on the amount of damages a ship owner can be held responsible for due to sea based oil pollution. This helps keep these damages at a manageable level and helps to ensure the long-term security of the maritime industry.

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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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