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Answar these Questione - Assignment Example

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The 1969 Civil Liability Convention and the 1971 Fund Convention, referred to as the old regime, became amended in 1992 by two protocols and became 1992 Civil Liability Convention and the 1992 Fund Convention respectively, otherwise referred to as the new regime (The Secretariat…
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Download file to see previous pages This led to the development of the 1992 Civil Liability Convention and the 1992 Fund Convention. These two provide a wider range of application on various aspects, as well as more flexible limits of compensation than the previous versions of the convention (The Secretariat of the International Oil Pollution Compensation Funds, 2004).
Any individual who has received more than 150 000 tonnes of crude oil, as well as heavy oil in one year, and is in a member state of the 1992 Fund Convention is liable to contribute to the fund. However, the levy of these contributions depends on reports of oil receipts with regards to individual contribution. The fact that the receiver could be a company owned by a state, a government agency, or a private company is a significant determinant of applying the levy (International Oil Pollution Compensation Funds, 2009).
According to the Gard Group (2011), member states need to report to the Fund Convention the name and address of any liable person to contribute and the amount of contributing oil they receive in that state, yearly. The only exceptions to reporting to the Fund Convention are associated persons such as subsidiaries and commonly controlled entities. In addition, the Fund levies annual contributions to its members who pay a certain amount per tonne of contributing oil they receive, so as to meet the projected expenses of the coming year (The Secretariat of the International Oil Pollution Compensation Funds, 2004).
In the 1992 Fund, there was a protocol adopted in 2003 that gave way to the establishment of the third tier of compensation on 3 March 2005, through the Supplementary Fund. The provision of the Supplementary Fund the limitation to paying for compensation for pollution damage for only the incidents that occur after the state in question accepts the Protocol. Notably, being a member of the Supplementary Fund is not a must and any ...Download file to see next pagesRead More
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