Question & AnswerQ&A (Republic Act No. 9483)
The short title is the "Oil Pollution Compensation Act of 2007."
The State adopts internationally accepted measures imposing strict liability for oil pollution damage to protect its marine wealth and ensure prompt and adequate compensation for affected persons.
It implements the 1992 International Convention on Civil Liability for Oil Pollution Damage and the 1992 International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage.
Pollution Damage means loss or damage caused outside the ship by contamination from the escape or discharge of oil, costs of reasonable measures of reinstatement, preventive measures costs, and further loss caused by such measures.
The owner of the ship at the time of the incident is liable for any pollution damage caused by the ship as a result of the incident.
Liability is exempted if the damage resulted from an act of war or natural phenomenon, was caused intentionally by a third party, or was caused by negligence of government agencies maintaining navigational aids.
Servants or agents of the owner, crew members, pilots, charterers, salvage operators with consent, persons taking preventive measures, and their agents are generally exempted unless damage resulted from intentional or reckless acts.
Liability limits depend on ship tonnage, with caps from 3 million units of account for ships up to 5,000 tons, increasing by 420 units per ton above that, not exceeding 59.7 million units of account.
They must constitute a fund representing the limit of liability with the Maritime Industry Authority (MARINA) either by depositing the sum or securing a bank or financial guarantee.
Shipowners must maintain compulsory insurance or other financial security annually to cover pollution damage in sums fixed by the limits of liability under the Act, certified by MARINA.
Fines range from P100,000 to P15,000,000 depending on ship tonnage, increasing by at least 10% every three years for inflation and deterrence.
Such ships may be denied entry or port services, prevented from loading/unloading, detained, and the owner and master can be fined.
Claims must be brought before the Regional Trial Courts (RTC) against the shipowner or insurer responsible.
The action must be filed within three years from the date the damage occurred and no later than six years from the date of the incident.
The IOPC Fund may intervene in legal proceedings, receive contributions from persons receiving large quantities of contributing oil, and help satisfy claims when other funds are insufficient.
They must report the quantity of contributing oil received annually to the Department of Energy by February 1 of the following year.
A fund administered by MARINA to finance immediate containment, cleanup operations, and research related to oil pollution, funded by contributions, fines, grants, and appropriations.
The Department of Transportation and Communications (DOTC) is the lead implementing agency unless otherwise provided.
The remainder of the Act remains valid and unaffected by the declared unconstitutionality of any provision.