Tanker Oil Pollution Indemnification Agreement 2006
In addition, regular consultations were held with ICS and Intertanko to ensure that the content of new agreements was acceptable to the widest possible range of the maritime industry. The Small Tanker Oil Pollution Indemnification Agreement (STOPIA) is a voluntary agreement between owners of small oil tankers (i.e., 29,548 GRT or less) and their insurers, which increases the maximum amount of compensation to be paid by owners of small oil tankers to SDR 20 million. It applies to all small oil companies registered in a P&I club that is a member of the International Group and that are reinsured through the group`s pooling agreements. The first incident involving a vessel used at STOPIA in 2006 was the Solar 1-Spill, which occurred in the Philippines in 2006. In this case, the compensation paid by the Fund in 1992, in addition to the Solar 1 ceiling set by the 1992 CLC, was reimbursed to the Fund in 1992 within two weeks of the Fund`s invoicing in 1992. The second incident involving a vessel that entered STOPIA in 2006 was the Haekup Pacific, which occurred off the southern coast of the Republic of Korea in 2010, but no claims were filed with the Fund in 1992 in respect of this incident. A first version of the regulations entered into force in 2005, but the revised texts, STOPIA 2006 and TOPIA 2006, entered into force on 20 February 2006. Its full names are the Small Tanker Oil Pollution Indemnification Agreement 2006 and the Oil Pollution Indemnification Agreement 2006. We refer to our circular of March 4, 2005, in which we informed members that the boards of directors of all International Group clubs had agreed to enter into a binding contractual agreement, known as stopia (Small Tanker Oil Pollution Indemnification Agreement), which has the effect of increasing the minimum liability limit for small oil tankers to SDR 20 million, in accordance with the 1992 Civil Liability Convention (CLC 92). STOPIA compensated the Fund in 1992 for the difference between an oil tanker`s liability limit for 92 CLCs and SDR 20 million. STOPIA entered into force on 3 March 2005, in recognition of the additional compensation obligation imposed on oil beneficiaries by the 2003 Protocol on Supplementary Funds and to demonstrate shipowners` support for the compensation system established by the 1992 CLC and Fund Conventions. STOPIA 2006 differs from the current STOPIA in that it contains a review mechanism to adapt the agreement in order to prospectively offset the share of claims paid by oil shipowners or beneficiaries since 20.2.2006 at the end of the first ten years of operation (and after the following five years), in accordance with the three conventions (CLC 92, Fund 92 and Protocol on Supplementary Funds 2003), more than 55%.
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