Decision ID: 000994

In February 1999 the 1992 Fund Executive Committee considered a revised procedure for the apportionment of payments between P&I insurers and the 1992 Fund, which had been proposed by the International Group of P&I Clubs. The Committee noted that the proposal was that when there was a risk that the total amount of established claims would exceed the maximum amount of compensation available under the Conventions and the payments would therefore be pro-rated, the 1992 Fund should from the outset participate in the payment to each claimant in proportion to the estimated respective ultimate liabilities of the insurer and the Fund. The Committee noted that in the view of the International Group of P&I Clubs, by applying this method of payment, both the Fund and the insurer concerned would be able to ensure that payments remained within their respective limits. The Committee decided that the existing practice and procedures, which were in accordance with Article 4.1(c) of the 1992 Fund Convention, which required that the Fund should compensate victims only when the shipowner’s payments had exceeded the limitation amount applicable to the vessel under the 1992 Civil Liability Convention, did not require any change.

Date: 01.02.1999
Category: Compensation payments
Subject: Apportionment of compensation payments between shipowner and Fund