Merchant Shipping (Oil Pollution) Act 1994 · Updated to 1 Jun 2015 · Part III · The International Oil Pollution Compensation Fund
19. Liability of the Fund
Official textFrom Laws of Malaysia Online, unchanged
Save as provided under subsection (4), the Fund shall be liable for pollution damage in any area of Malaysia if the person suffering the damage has been unable to obtain full compensation under section 3—
the Fund
“the Fund” means the International Oil Pollution Compensation Fund established by the Fund Convention;
because liability under that section is wholly exonerated by section 4;
because the owner of a ship liable for the pollution damage cannot meet his obligations in full or any insurance or other financial security provided under section 11 is insufficient to satisfy the claims; or
because the pollution damage exceeds the liability under section 3 as limited by section 6.
For the purposes of this section the owner of a ship is to be treated as incapable of meeting his obligations if the obligations have not been met after all reasonable steps have been taken to pursue the legal remedies available.
Expenses reasonably incurred or sacrifices reasonably made by the owner of a ship voluntarily to prevent or minimize pollution damage shall be treated as pollution damage for the purpose of this section, and accordingly he shall be in the same position with respect to claims against the Fund under this section as if he had a claim in respect of liability under section 3.
pollution damage
“pollution damage” means— (a) loss or damage caused outside a ship by contamination resulting from the discharge or escape of oil or bunker oil from the ship, wherever such discharge or escape may occur, provided that compensation for impairment of the environment other than loss of profit from such impairment shall be limited to costs and reasonable measures of reinstatement actually undertaken or to be undertaken; and (b) the costs of preventive measures and further loss or damage caused by preventive measures;
The Fund shall not incur an obligation under this section if—
it proved that the pollution damage—
resulted from an act of war, hostilities, civil war or insurrection; or
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was caused by oil which has been discharged or has escaped from a warship or other ship owned or operated by a State and used, at the time of the incident, only on government non-commercial service; or
the claimant cannot prove that the pollution damage resulted from an incident involving one or more ships.
If it is proved that the pollution damage resulted wholly or partly—
from an act or omission done with intent to cause damage by the person who suffered the damage; or
from the negligence of that person, the Fund may be exonerated wholly or partly from its obligation to pay compensation to that person:
Provided that this subsection shall not apply to a claim in respect of expenses or sacrifices made voluntarily to prevent or minimize pollution damage.
The Fund’s liability under this section shall be subject to the limits as set out in Part II of the First Schedule.
Notwithstanding any other written law evidence of any instrument issued by any organ of the Fund or of any document in the custody of the Fund, or any entry in or extract from such a document, may be given in any legal proceedings by production of a copy certified as a true copy by an official of the Fund; and any document purporting to be such a copy shall be received in evidence without proof of the official position or handwriting of the person signing the certificate.
person
“person” means any individual or partnership or any public or private body, whether corporate or not, including a State or any of its constituent subdivisions;
For the purpose of giving effect to the provisions of paragraphs 1, 2, 3, 6, 7 and 8 of Article 4 of the Fund Convention and Part II of the First Schedule, as the may case may be, a Court giving judgement
the Fund Convention
“the Fund Convention” means the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage signed in London on 27 November 1992. Legal personality of the Fund
Merchant Shipping (Liability and 31
Compensation for Oil and Bunker Oil Pollution)
oil
“oil”, except in Part III, means any persistent hydrocarbon mineral oil such as crude oil, fuel oil, heavy diesel oil and lubricating oil, whether carried on board a ship as cargo or in the bunkers of such a ship;
against the Fund in proceedings under this section shall notify the
Fund, and—
no steps shall be taken to enforce the judgement unless and until the Court gives leave to enforce it;
that leave shall not be given unless and until the Fund notifies the Court either that the amount of the claim is not to be reduced under the said provision of Article 4 or Part II of the First Schedule;
in the latter case the judgement shall be enforceable only for the reduced amount.
Terms defined in this Act
bunker oil
Defined · s 2“bunker oil” means any hydrocarbon mineral oil, including lubricating oil, used or intended to be used for the operation or propulsion of the ship, and any residues of such oil;
Court
Defined · s 2“Court” means the High Court in Malaya and the High Court in Sabah and Sarawak, as the case may be;
incident
Defined · s 2“incident” means any occurrence, or series of occurrences having the same origin, which causes pollution damage or creates a grave and imminent threat of causing such damage;
oil
Defined · s 2“oil”, except in Part III, means any persistent hydrocarbon mineral oil such as crude oil, fuel oil, heavy diesel oil and lubricating oil, whether carried on board a ship as cargo or in the bunkers of such a ship;
person
Defined · s 2“person” means any individual or partnership or any public or private body, whether corporate or not, including a State or any of its constituent subdivisions;
pollution damage
Defined · s 2“pollution damage” means— (a) loss or damage caused outside a ship by contamination resulting from the discharge or escape of oil or bunker oil from the ship, wherever such discharge or escape may occur, provided that compensation for impairment of the environment other than loss of profit from such impairment shall be limited to costs and reasonable measures of reinstatement actually undertaken or to be undertaken; and (b) the costs of preventive measures and further loss or damage caused by preventive measures;
the Fund
Defined · s 15“the Fund” means the International Oil Pollution Compensation Fund established by the Fund Convention;
the Fund Convention
Defined · s 15“the Fund Convention” means the International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage signed in London on 27 November 1992. Legal personality of the Fund
Part IV
Jurisdiction and Effect of Judgements
Part V
Enforcement
Part VI