ANY OTHER BUSINESS. Note bv the DireBr

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1 EXECUTIVE COMMllTEE 46th session Agenda item 5 FUNDIEXC.4611 O 7 December 1995 Original: ENGLiSH ANY OTHER BUSINESS 1992 Civil Liability Convention: Issuing of certificates of Insurance during the transitional period and recognition of certificates of insurance Note bv the DireBr lssuina of certificates of insurance 1 The owner of a ship carrying more than 2 O00 tonnes of oil in bulk as cargo is required under the 1992 Civil Liability Convention (ie the 1969 Civil Liability Convention as amended by the 1992 Protocol thereto) to carry on board a certificate of insurance or other financial security. The relevant provisions of the 1992 Civil Liability Convention concerning the issuing of such certificates read as follows: Article VI1 1 The owner of a ship registered in a Contracting State and carrying more than 2,aiO tons of oil in bulk as cargo shall be rcquired to maintain insurance or other financial security, such as the guarantee of a bank or a certificate delivered by an international compensation fund, in the sums fixed by applying the limits of liability prescribed in Article V, paragraph 1 to cover his liability for pollution damage under this Convention. 2 A certificate attesting that insurance or other financial security is in force in accordance with the provisions of this Convcntion shall be issued to each ship after the appropriate authority of a Contracting Staie has determined that the requirements of paragraph 1 have been complied with. With respect to a ship registered in a Contracting State such certificate shall be issued or ccrtificd by the appropriale authority of the State of the ship's registry; with respect to a ship not registered in a Contracting State it may be issued or certified by the appropriate authority of any Contracting Staie. This certificate shall be in the form of the annexed model and shall contain the following particulars: (a) name of ship and port of registration;

2 FUND/EXC.46/1 O (c) (d) (e) name and principal piace of business of owner; type of security; name and principal place of business of insurer or other person giving security and, where appropriate, placc of business where the insurance or security is established; period of validity of certificate which shall not be longer than the period of validity of the insurance or other security. 2 A State which is at present Party to the 1969 Civil Liability Convention is required to issue certificates attesting insurance cover under that Convention. A State which becomes Party Only to the 1992 Civil Liability Convention will be required to issue certificates attesting insurance cover under that Convention. 3 If a State Party to the 1969 Civil Liability Convention becomes a Party to the 1992 PrOtOCOl to the Civil Liability Convention also, then it will be necessary, during the transitional period when both Conventions apply, for the authorities in such a State to issue certificates covering liabilities under both Conventions. The 1992 Conference which adopted the 1992 Protocol to the civil Liability Convention recommended such certificates in Resolution 1 (reproduced in the Annex to this document). 4 Special consideration will need to be given to the certificates issued in the year during which the 1992 Protocol to the Civil Liability Convention enters into force for a State Party also to the 1969 Civil Liability Convention. These certificates would need to cover liabilities under the 1969 Civil Liability Convention before the entry into force of the 1992 Protocol, and liabilities under both the 1969 and 1992 Conventions afterwards. 5 There would appear to be two options available. One possibility would be for the authorities in a State to issue a single certificate which clearly specifies the dates on which the different levels of liability apply. Alternatively, a State could issue two separate certificates covering the different periods. In either case, the authorities would need to be assured that the shipowner has insurance or other security to guarantee the appropriate levels of liability for both periods. 6 It should be noted that certificates issued by the authorities of States Parties only to the 1969 Civil Liability Convention might not be recognised by States which are Parties to the 1992 civil Liability Convention but not to the 1969 Convention. Recognition of certificates - of insurance 7 A State Party to the 1992 Civil Liability Convention shall ensure that tankers entering a port in its territory shall carry on board the requisite certificate of insurance. The relevant provision of the 1992 Civil Liability Convention reads as follows: Article VI1 11 Subject to the provisions ol this Article, each Contracting State shall ensure, under its national legislation, that insurance or other security to the extent specified in paragraph 1 of this Article is in force in respect of any ship, wherever registered, entering or leaving a port in ils territory, or arriving at or leaving an off-shore temiinal in its territorial sea, if the ship actually carries inore than 2,000 ions of oil in bulk as cargo.

3 -3- FUND/EXC.46/1 O 8 States Parties to the 1992 Civil Liability Convenüon will therefore have to ensure that tankers entering their ports carry certificates of insurance up to the limits of liability established in that Convention. 9 Attention is drawn to a particular treaty law issue arising during the transitional period, that is the period during which a State may be Party to both the 1969 Civil Liability Convention and the 1992 Civil Liability Convention. During this period, a State which is Party to both instruments will have to respect its treaty obligations under the 1969 Convention towards States which are Parties to the 1969 Civil Liability Convention but which are not Parties to the 1992 Civil Liability Convention. If a ship flying the flag of a State Party to the 1969 Civil Liability Convention but not to the 1992 Convention enters the port of a State Party to the 1992 Convention, the latter State can only require the ship to carry a certificate of insurance cover up to the limit laid down in the 1969 Convention. It will therefore be necessary for the authorities responsible for verifying the existence of the required certificates in States which are Parties to both the 1969 Civil Liability Convention and to the 1992 Protocol thereto to be aware, during the transitional period, of which States are Parties to both Conventions and which are Parties only to the 1969 Convention. Actlon to be taken by the Executive Committee 10 The Executive Committee is invited to take note of the information contained in this document. ***

4 FUND/EXC.46/1 O Resolution 1 RESOLUTION ON THE RECOGNITION OF CERTIFICATES ISSUED IN ACCORDANCE WITH THE INTERNATIONAL CONVENTION ON CIVIL LIABILITY FOR OIL POLLUTION DAMAGE, 1969 AND THE INTERNATIONAL CONVENTION ON CIVIL LIAEILITï FOR OIL POLLUTION DAMAGE, 1992 THE CONFERENCE, CONSIDERING that for a period during which the International Convention on Civil Liability for Oil Pollution Damage, 1969, and the International Convention on Civil Liability for Oil Pollution Damage, 1992, coexist it is desirable that Parties to these Conventions make all efforts to facilitate the recognition of certificates required by the Conventions, RECOMMENDS that Parties to the International Convention on Civil Liability for Oil Pollution Damage. 1969, and Parties to the International Convention on Civil Liability for Oil Pollution Damage, 1992, apply the following practice in respect of the issue and the recognition of certificates: (a) Parties to the International Convention on Civil Liability for Oil Pollution Damage. 1969, and Parties to the International Convention on Civil Liability for Oil Pollution Damage, 1992, issuing certificates attesting that insurance or other financial security is in force in accordance with the provisions of the respective conventions. should use the document in the form annexed to this resolution and, in so far as is appropriate in each respective case, should certify that the requirements of both Conventions are satisfied. (b) Parties to the International Convention on Civil Liability for Oil Pollution Damage, 1969, on the one side and Parties to the international Convention on Civil Liability for Oil Pollution Damage, 1992, on the other side should mutually recognize and accept certificates issued by the appropriate authority in accordance with the provisions of the respective Conventions. The certificate should be accepted to the extent and under the conditions provided for in Article VII, paragraph 7. of the relevant Conventions, including the procedure of consultation.

5 FUNDlEXC.4611 O Page 2 CERTIFICATE OF INSURANCE OR OTHER FINANCIAL SECURITY IN RESPECT OF CIVIL LIABILIïY FOR OIL POLLUTION DAMAGE Issued in accordance with the provisions Issued in accordance with the provisions of Article VI1 of the International of Article VI1 of the International Convention on Civil Liability for Oil Convention on Civil Liability for Oil Pollution Damage, Pollution Damage, Name of ship Distinctive Port of Name and address number or letters registry of owner This is to certify that there is in force in respect of the above-named ship a policy of insurance or other financial security satisfying the requirements of Article VI1 of the International Convention on Civil Liability for Oil Pollution Damage, This is to certify that there is in force in respect of the ahove-named ship a policy of insurance or other financial security satisfying the requirements of Article VI1 of the International Convention on Civil Liability for Oil Pollution Damage Type of Security Duration of Security Name and Address of the Insurercs) andior Guarantor(s) Name... Address... This certificate is valid until... Issued or certified by the Government of (Full designation of the State) At... On... (Place) ( Date )... Signature and Title of issuing or certifying official Unless indicated to the contrary the signature of this certificate certifies that liability under both Conventions is covered.

6 FUND/EXC.46/10 Page 3 Explantory Notes: 1 If desired, the designation of the State may include a reference to the competent public authority of the country where the certificate is issued If the total amount of security has been furnished by more than one source, the amount of each of them should be indicated. 11 security is furnished in several forms, these should be enumerated. The entry "Duration of Security" must stipulate the date on which sucb security takes effect.