Singapore: Straits Bunkering a step closer in securing SGD 8 million bunker spill liability ceiling

Straits Bunkering and QBE Insurance (Singapore), which uses the brand name British Marine, has taken a step closer in securing liability limitation from a recent bunker spill involving Marine Honour (IMO 9422811).

PSA Corporation will not be to contesting the right for Straits Bunkering and British Marine to limit their liability, showed documents obtained from the court by Manifold Times.

The latest development paves way for Straits Bunkering and British Marine to limit their liability, whereby a ceiling of 4,510,000 Special Drawing Rights (SDR) valued at approximately SGD 8 million will be deposited by QBE Insurance into a local bank account.

Claims exceeding the liability limitation of Straits Bunkering, owner of bunker tanker Marine Honour, will meanwhile be made against International Oil Pollution Compensation Fund 1992 which has a much higher limit of SGD 362 million.

Singapore is a Party to both the 1992 Civil Liability Convention (CLC) and the 1992 Fund Convention. It has been confirmed that the oil from the vessel is persistent and that the Marine Honour falls within the definition of ‘ship’ under those Conventions. Therefore, both the 1992 CLC and Fund Convention apply to this incident.

Under the 1992 CLC, the shipowner has strict liability for any pollution damage caused by the oil, i.e. the owner is liable even if there was no fault on the part of the ship or its crew.  However, the shipowner has the right to limit its financial liability to an amount that is determined by the tonnage of the ship.

The 1992 Fund Convention provides a second tier of compensation when full compensation for the pollution damage cannot be obtained from the shipowner, or valid claims exceed the shipowner’s limit. Claimants may be individuals, partnerships, companies, private organisations or public bodies, including States or local authorities.

On 30 July, IOPC Funds and British Marine, insurer of Marine Honour, opened a Claims Submission Office to facilitate the submission of claims for compensation by those affected by the oil pollution damage resulting from the incident, which occurred at Pasir Panjang Terminal, Singapore on 14 June 2024.

Note: Lawyers from Helmsman LLC are representing Straits Bunkering and QBE Insurance (Singapore), while PSA Corporation is represented by lawyers from Rajah & Tann Singapore LLP.

Related: Singapore: IOPC Funds and British Marine open joint CSO for “Marine Honour” incident
Related: MPA: Claims exceeding liability of “Marine Honour” owner will be made against international fund
Related: MPA: Owner of bunker tanker involved in Singapore oil spill is liable for pollution damage
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Published: 7 August 2024