Exam Question

### **Introduction to the IOPC Funds Regime**
The International Oil Pollution Compensation (IOPC) Funds are a crucial component of the international legal and financial framework established to provide compensation for oil pollution damage resulting from spills of persistent oil from tankers. Created under the auspices of the International Maritime Organization (IMO), the Funds operate based on the 1992 Civil Liability Convention (CLC) and the 1992 Fund Convention. The regime embodies the 'polluter pays' principle but recognizes that the costs of a major spill can exceed the financial capacity of a single shipowner. The Funds provide a second and third tier of compensation, ensuring that victims receive prompt and adequate financial redress.
### **1. Role and Core Functions of the IOPC Funds**
The primary role of the IOPC Funds is to supplement the compensation available under the Civil Liability Convention (CLC). When the shipowner's liability is insufficient to cover all admissible claims, the Funds step in. Their core functions are: