What is an admissible claim?

Claims for pollution damage and remedial measures have to be submitted to operators for compensation in accordance with the terms of the OPOL Agreement.

Pollution damage is defined in the OPOL Agreement as direct loss or damage by contamination that results from an escape or discharge of oil. Remedial measures are also defined in the OPOL Agreement as reasonable measures taken by a claimant to prevent, mitigate or eliminate pollution damage following an escape or discharge of oil.

In addition, operators are required by the OPOL Agreement to meet the costs of remedial measures which are undertaken by them.

Admissible claims fall into the following categories:

a) Clean-up operations onshore or at sea

b) Physical loss or physical damage to tangible property

c) Disposal costs of collected material

d) Other quantifiable losses that result directly from the contamination itself.

Claims must be reasonable, quantifiable and justifiable.

How to make a claim

A claimant should, as soon as possible after the oil spill incident, notify in writing the operator who has caused the pollution or that operator’s appointed claims management service provider that damage has been suffered and/or costs incurred.

The notice should contain the following information:

i) Name and address (physical and email) and telephone contact details of each claimant.

ii) The location/name of the facilities from which the escape or discharge of oil took place.

iii) The date of the incident and the dates and locations where the pollution damage was sustained, together with its nature and extent.

iv) The remedial measures taken by governments, public bodies or authorities (municipal, local or otherwise)and for claims by others, the nature and extent of the damage incurred, the approximate cost (if known) of the remedial measures and/or the amount claimed in respect of direct damage suffered.

A claim must be notified to the operator within 1 year of the incident for OPOL to apply, although any claim within that period may be amended at any time prior to final settlement. Claimants must provide the operator or the operator’s appointed claims management service provider with all information, documentation and testimony reasonably required in connection with the investigation of any claim.

Any claim not notified within 1 year of the incident can still be made at law by reference to and in accordance with national legislation and practice.

Settlement of Claims

Once a claim has been filed against the relevant operator, that operator remains solely responsible for the acceptance and payment of such claim in accordance with the OPOL Agreement.

Under the OPOL Agreement, any payment made to a claimant is required to be in full and final settlement of the claim against the operator and conditional upon a claimant executing the necessary releases/documents in respect of the claims that are payable by the operator pursuant to its obligations under the OPOL Agreement.

In the event of a dispute between a claimant and the operator as regards the scope and amount of its claim, the claimant may, if unsatisfied, elect to pursue its claims against the operator under the civil procedure or other applicable rules in the relevant jurisdiction. In that event, the operator’s liability under the OPOL Agreement lapses.

In the event of a default by the operator, the claimant should advise OPOL immediately whereupon the claim will be investigated by OPOL and administered in accordance with OPOL’s default contribution provisions.

Key points for claimants

1. OPOL is not a fund and does not pay claims.

2. Operators are responsible for the receipt and payment of all valid claims up to the OPOL limits.

3. The OPOL Agreement does not restrict a claimant’s right to seek redress in the courts for reimbursement of claims.

4. In the event of a default by an operator in the payment of a valid claim, the non-defaulting operators are required to contribute to such claim in accordance with the OPOL default contribution provisions.

5. Pollution damage caused by war, terrorism and related perils are excluded.