MEO Class I · Oral · asked at MMD Kochi

What does the CLC apply to, what is the certificate threshold, and what are the tiers of compensation?

Short answer

flowchart LR
  A["Tier 1: CLC, the registered owner up to the tonnage limit, compulsory insurance"] --> B["Tier 2: 1992 IOPC Fund, paid by oil receivers"]
  B --> C["Tier 3: Supplementary Fund (2003 Protocol) for member States"]
  • Applies to: pollution damage from persistent oil carried as cargo by a laden tanker, in a State Party’s territory, territorial sea and EEZ, plus preventive measures; strict liability channelled to the registered owner.
  • Threshold: the compulsory insurance and CLC certificate apply to a ship carrying more than 2,000 tons of persistent oil in bulk as cargo: a quantity of oil, not a gross-tonnage figure.
  • Tier 1, the CLC: the registered owner, strictly liable up to a tonnage-based limit (unless personal fault), backed by compulsory insurance with direct action against the insurer.
  • Tier 2, the 1992 IOPC Fund: additional compensation where the CLC is insufficient, the owner exonerated or unable to pay, financed by oil receivers in member States.
  • Tier 3, the Supplementary Fund (2003 Protocol): a further, much higher layer for States that joined.
  • India: MS Act 2025 s.175 to 179 (application, liability, limitation, certificate), s.214 and 216 (the Fund); DGMA issues the certificate; I prevent the spill and keep it valid.

Full answer

The full answer explains each point step by step, with the regulations and figures behind it and the discussion from other candidates. It is in the MEO Class I section of the Marine One forum, open to members enrolled for the MEO Class I exam.