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IMO creates supplementary oil pollution fund

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LONDON--The International Maritime Organization plans to establish an additional oil pollution fund that could increase the compensation available after tanker accidents to 750 million special drawing rights ($1.05 billion).

The IMO announced earlier this week that it had adopted a protocol establishing an international oil pollution compensation supplementary fund. Its aim is to supplement the compensation available victims of pollution under the 1992 Civil Liability and Fund conventions with an additional, third tier of compensation. The protocol is optional, and participation is open to all countries who are party to the 1992 fund convention.

Like the existing funds, the supplementary fund will be financed through a levy on oil importers at the participating countries. The total amount of compensation payable for any one incident will be limited to a combined total of 750 million special drawing rights ($1.05 billion), including the amount of compensation paid under the two existing conventions. The total amount of compensation payable under the existing funds can vary depending on the tonnage of the vessels involved.

"With the adoption of this protocol, the IMO has succeeded in substantially enhancing the compensation available under the 1992 convention. The supplementary scheme introduced by the protocol should therefore ensure, for the foreseeable future, that victims of oil pollution damage will be fully compensated for their losses," said IMO Assistant Secretary-General Efthimios Mitropoulos.

The supplementary fund will apply to damage in the territory of any country that becomes a signatory to the new protocol and in the exclusive economic zone of a contracting state.

The new fund will come into existence three months after at least eight states have ratified the protocol, which will be opened for signature from July 31, 2003.