Decision ID: 002763

In October 2000 the 1971 Fund Administrative Council authorised the Director to purchase insurance covering any liabilities of the 1971 Fund for compensation and indemnification up to 60 million Special Drawing Rights (SDR) (£55 million) per incident (minus the amount actually paid by the shipowner/insurer under the 1969 Civil Liability Convention) as well as legal and other expert fees, in respect of all incidents occurring up to 31 December 2001, with the Fund itself having to cover a deductible of 250,000 SDR for each incident, and the Fund having the option to extend the insurance cover up to 31 October 2002. The Administrative Council decided that the insurance premium (£768,800) should be paid from the General Fund during the 2000 financial year as a claims expense.