Merchant Shipping (Civil Liability and Compensation for Oil Pollution) Act 1998 · 2020 Revised Edition · Part 3 · International Oil Pollution Compensation Fund
27. Liability of Fund
Feedback & supportThe Fund shall be liable for pollution damage in the territory of Singapore if the person suffering the damage has been unable to obtain full compensation under section 3 —
the Fund
“the Fund” means the International Fund established by the Fund Convention.
because the discharge or escape, or the relevant threat of contamination, by reason of which the damage was caused —
resulted from an exceptional, inevitable and irresistible natural phenomenon;
was due wholly to anything done or left undone by another person, not being an employee or agent of the owner, with intent to do damage; or
was due wholly to the negligence or wrongful act of a government or other authority in exercising its function of maintaining lights or other navigational aids for the maintenance of which it was responsible,(and because liability is accordingly wholly displaced by section 4);
because the owner or insurer liable for the damage cannot meet the owner’s or insurer’s obligations in full; or
because the damage exceeds the liability under section 3 as limited by section 6 or by section 136 of the Merchant Shipping Act 1995, as the case may be.
Subsection (1) applies (but with the substitution of the words “a Fund Convention country” for the word “Singapore”) where the incident has caused pollution damage in the territory of Singapore and of another Fund Convention country, and proceedings under the Liability Convention for compensation for the pollution damage have been brought in a country which is not a Fund Convention country or in Singapore.
Fund Convention country
“Fund Convention country” means a country in respect of which the Fund Convention is in force;
Where the incident has caused pollution damage in the territory of Singapore and of another country in respect of which the Liability Convention is in force, references in this section to the provisions of Part 2 include references to the corresponding provisions of the law of any country giving effect to the Liability Convention.
incident
“incident” means any occurrence, or series of occurrences having the same origin, resulting in a discharge or escape of oil from a ship or in a relevant threat of contamination;
For the purposes of this section, an owner or insurer is to be treated as incapable of meeting the owner’s or insurer’s obligations if the obligations have not been met after all reasonable steps to pursue the legal remedies available have been taken.
owner
“owner”, in relation to a ship, means the person registered as the owner of the ship, or, in the absence of registration, the person owning the ship, except that, in relation to a ship owned by a State which is operated by a person registered in that State as the ship’s operator, it means the person registered as its operator;
Expenses reasonably incurred, and sacrifices reasonably made, by the owner voluntarily to prevent or minimise pollution damage are treated as pollution damage for the purposes of this section, and accordingly the owner shall be in the same position with respect to claims against the Fund under this section as if the owner had a claim in respect of liability under section 3.
pollution damage
“pollution damage” means —(a)damage caused outside a ship by contamination resulting from a discharge or escape of oil from the ship;(b)the cost of preventive measures; and(c)further damage caused by preventive measures,but does not include any damage attributable to any impairment of the environment except to the extent that any such damage consists of —(d)any loss of profits; or(e)the cost of any reasonable measures of reinstatement actually taken or to be taken;
The Fund incurs no obligation under this section if —
it proves that the pollution damage —
resulted from an act of war, hostilities, civil war or insurrection; or
was caused by oil which has been discharged or escaped from a warship or other ship owned or operated by a State and used, at the time of the occurrence, only on government non‑commercial service; or
the claimant cannot prove that the damage resulted from an occurrence involving a ship identified by the claimant, or involving 2 or more ships one of which is identified by the claimant.
If the Fund proves that the pollution damage resulted wholly or partly —
from anything done or omitted to be done with intent to cause damage by the person who suffered the damage; or
from the negligence of that person,the Fund may, subject to subsection (9), be exonerated wholly or partly from its obligations to pay compensation to that person.
Where the liability under section 3 in respect of the pollution damage is limited to any extent by subsection (8) of that section, the Fund shall, subject to subsection (9), be exonerated to the same extent.
Subsections (7) and (8) do not apply where the pollution damage consists of the costs of preventive measures or any damage caused by such measures.