Insurance of oil pollution risk

Baban, Hisham Shukri (1980) Insurance of oil pollution risk. University of Southampton, Doctoral Thesis.

Abstract

Despite the modern techniques employed in construction and navigation of tankers and other ships, large quantities of oil are still released therefrom to the marine environment, through operational and accidental discharges, due to the high percentage of human error involved. Due to the destructive effects of the oil on the marine environment and all the interests depending thereon, it is the object of this study to review and analyse the liability roles related to the pollution by oil from ships as a maritime tort committed by those conducting the activity. While doing so, it was kept in mind that any liability rules, whether established in common law or developed through national and international legal instruments, would be of a limited effect if not coupled with the availability of insurance to those who are able to bear the risk and pay the cost, and then pass it over to the community at large. It is to be noted that the traditional maritime law, based on the concept of fault, offered no remedy for those who suffered the pollution damage. In the few instances where the concept of strict liability was employed, the claimant may again be deprived from any compensation due to the mechanism of the tort relied upon. In such situations the availability of insurance will be of no use to the claimant, who may only recover when the insured wrongdoer is held liable for the tort. Though the late 60c witnessed concerted efforts to change the liability rules; and thus the strict liability was introduced, coupled with the compulsory insurance principle, certain situations are still inadequately tackled, due to the restricted nature of the rules so developed, it is the object of this study to do that.

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