News | May 11, 1999

UK Club Offers New Oil-spill Insurance

Lloyd's List reported on May 5 that the UK P&I Club has offered new oil spill management and response arrangements in the U.S. to the dry-cargo-vessel operators that it insures for liability risk.

The purpose is to ensure that owners can take immediate action in the event of a pollution incident and, thereby, minimize damage.

Lloyd said that the club appointed the U.S. spill management firm Corbett & Holt to assist any dry-cargo ship involved in a spill in the U.S. and entered with the club.

Agreement also was reached with the two largest U.S. oil-spill response organizations, Marine Spill Response Corporation and National Response Corporation, to provide spill-response services.

Members are not obliged to join and can opt out if they have alternative preferred spill managers, the club says.

Unlike tanker operators, dry-cargo-vessel operators are not required to make advance arrangements for dealing with spills in the U.S. This can cause delay and additional expense.

The new pre-contracted arrangement should save time in the event of a pollution incident.

The club also said it was reviewing proposed regulations relating to oil-spill contingency response plans for dry-cargo ships that trade to California, effective the beginning of September.