What is an admissible claim?

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

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

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

Claims to be considered as admissible would 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 losses which must be quantifiable and which must 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 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, 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 shall be required to forward to the operator or the operator’s appointed claims management service provider all such information, documents and testimony as are reasonably required in connection with the investigation of any claim.

Any claim not notified within 12 months 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 on a contractual strict liability basis.

Under The 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 Agreement.

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

In the event of a default by the operator, the claimant should advise OPOL immediately whereupon the claim will be administered by OPOL under the Guarantee Clause in The Agreement.

Key points for claimants

1. OPOL is not a fund.

2. Operators are solely responsible for receipt and payment of all claims.

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

4. Valid claims are guaranteed up to the limits under The Agreement.

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