Pioneering agreement to expedite oil spill compensation claims
The Maritime and Port Authority of Singapore (MPA) and the International Tanker Owners Pollution Federation Limited (ITOPF) renewed a Memorandum of Understanding (MOU) aimed at expediting the processing of oil spill compensation claims.
The MOU on Oil Spill Resources was first signed in 2007 and Singapore was the first country in the world to establish such an agreement that covered a pre-agreed schedule of rates for oil spill response resources. The agreement was supported by the International Group of P&I Clubs and the International Oil Pollution Compensation Fund. In addition to establishing a pre-agreed schedule of rates to expedite claims settlements, the MOU helped ensure necessary resources were available to handle oil spills. As part of the renewal, the schedule of rates were reviewed and updated based on current market conditions.
Mr Cheong Keng Soon, MPA’s Director (Port), said “The pre-agreed schedule of rates, as a result of the MOU, has come in useful during the post-incident claims and compensation process. The MOU is testimony to the close partnership forged between MPA and industry players in combating any oil spills and protecting the marine environment.”
Mr Richard Johnson, Technical Director of ITOPF commented that “The MOU has proven successful in expediting compensation payment for the benefit of all involved parties. Having pre-agreed rates at the time of a spill is extremely helpful and it is most pleasing that the MPA and ITOPF have worked closely to keep the initiative alive and up to date. The MOU, along with arrangements whereby ITOPF is usually invited to work alongside MPA in order to offer advice and assistance during an incident, is a good example of industry/government co-operation.”
The renewal of the MOU was signed by MPA’s Director (Port) Mr Cheong Keng Soon and ITOPF’s Technical Director Mr Richard Johnson during the opening of the International Chemical and Oil Pollution Conference and Exhibition (ICOPCE) 2013.
ICOPCE is a two-day international conference organised by MPA as part of Singapore Maritime Week 2013, where participants exchange insights and share best practices for the prevention of chemical and oil spills, and for the effective response to such incidents.
Source: MPA Singapore