Relevant documents and M-notices: MGN 507, International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001
Certificate of Insurance or Other Financial Security in Respect of Civil Liability for Bunker Oil Pollution Damage
Note that the certificate is also referred to informally as the bunkers certificate, and the Certificate of Financial Liability (CFL).
Where do the requirements come from?
The Bunkers Convention, 2001* requires that the registered owner of a ship over 1,000GT must maintain insurance (or other financial security, such as a guarantee from a bank) in respect of the shipowner’s liability arising under the Convention.
The insurance must be verified by a certificate issued by a State Party and ships must carry on board such a certificate confirming that the ship is so insured.
*This is the IMO-originating International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 which is made into UK law by The Merchant Shipping (Oil Pollution) (Bunkers Convention) Regulations 2006.
Why is this convention important?
The Convention was adopted to ensure that adequate, prompt, and effective compensation is available to persons who suffer damage caused by spills of oil, when carried as fuel in ships' bunkers. It allows for a claim for compensation to be brought directly against an insurer.
What are bunkers?
“Bunker oil” is defined as any hydrocarbon mineral oil which is carried by a ship used or intended to be used for the operation or propulsion of that ship and any residues of such oil. It encompasses not just fuel but also oils used as lubricants.
Note that this certificate does not cover oil that is carried as a cargo. There are other certificates and insurances for that, which will be covered in another article.
Information on the certificate
Identifying particulars of vessel
Name and address of registered owner
Type of security
Duration of security
Name and address of the insurer or guarantor
Expiry date
Name of issuing authority (the state)
MCAQs
What is the CFL?
Who issues this certificate and what does it certify?
Under what convention is this certificate required?
What size of vessel requires this certificate?
Does it cover pollution by lubricating oil? Oil as a cargo? Fuel oil?