Legal and Documentary

Main aims

·         To further the common interests of the independent tanker industry with regard to all relevant insurance and liability issues.

·         To act as a resource group for INTERTANKO’s Council and other committees as well as the Secretariat.

·         To act as a link between INTERTANKO and the insurance industry and its associations / organisations.

 

INTERTANKO’s Insurance and Legal Committee met in June 2010 in Oslo, focusing especially on the current issues of criminalisation, piracy and the continuing threats posed to the limitation of liability, demonstrated most recently by proposed revisions to the Oil Pollution Act of 1990 (OPA 90) following the Deepwater Horizon incident.

 

At the IOPC Funds’ meetings, the issue of ‘definition of ship’ has again been raised in relation to bringing Floating Production Storage Offshore units (FPSO) and Floating Storage Units (FSU) within the CLC and Fund Convention regime. These discussions have highlighted in particular the difference in the liabilities of offshore facilities, FPSOs, FSUs and ships and the treatment thereof between the marine and energy insurance markets.

 

These differences have been re-emphasised by the Gulf of Mexico spill.

 

As part of the Committee’s ongoing remit to meet with the insurance market, there was also a further joint meeting in June between the INTERTANKO Committee and representatives of the Nordic Association of Marine Insurers (CEFOR). The Committee enjoyed a positive exchange with the CEFOR team with representatives from the hull, war and P & I markets. CEFOR gave a presentation on its well-researched insurance statistics with particular reference to the tanker market. Discussions with CEFOR also showed insurers’ continuing concerns about the human element in shipping, including accidents and damage sustained while pilots are onboard. Good bridge management is high on their agenda.

 

The Chairman and Secretary also met in July with members of the International Group of P & I Clubs. Discussions focussed on piracy, OPA 90, criminalisation and Iranian sanctions. Again, the human element was highlighted by the P & I Clubs as a cause for concern for claims incidents.

 

The Committee is finalising Terms of Reference for a cross-discipline Working Group on Criminalisation. This group calls upon the expertise of members of the Human Element in Shipping Committee. The Committee continues to monitor individual incidents of criminalisation, including the ongoing case of the Prestige and more recently cases concerning alleged drug smuggling in Venezuela.

 

In doing so, it hopes to draw together the central trends on criminalisation. In particular some national courts have demonstrated a will, even intent, to punish seafarers not for their act of omission, but for its consequences. In addition, the Committee foresees the potential circumvention of international conventions by these, and other, decisions, threatening both limitation and the carefully crafted compensation regime.

 

The Committee regularly reports to and advises INTERTANKO’s Council and Executive Committee on insurance issues, in particular where they carry the potential to increase exposure and liabilities for tanker operators.