PART 2 | CIVIL LIABILITY FOR BUNKER OIL POLLUTION |
| Liability for bunker oil pollution |
3.—(1) Subject to subsection (3), where as a result of any occurrence, any bunker oil is discharged or escapes from a ship, the owner of the ship shall, except as otherwise provided by this Part, be liable —| (a) | for any damage caused outside the ship in the territory of Singapore by contamination resulting from the discharge or escape; | | (b) | for the cost of any measures reasonably taken after the discharge or escape for the purpose of preventing or minimising any damage so caused in the territory of Singapore by contamination resulting from the discharge or escape; and | | (c) | for any damage caused in the territory of Singapore by any measures so taken. |
(2) Subject to subsection (3), where as a result of any occurrence, there arises a grave and imminent threat of damage being caused outside a ship by the contamination that might result if there were a discharge or an escape of bunker oil from the ship, the owner of the ship shall, except as otherwise provided by this Part, be liable —| (a) | for the cost of any measures reasonably taken to prevent or minimise any such damage in the territory of Singapore; and | | (b) | for any damage caused outside the ship in the territory of Singapore by any measures so taken, |
| and in this Act, any such threat is called a relevant threat of contamination. |
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(3) There shall be no liability under this section in relation to —| (a) | a discharge or an escape of bunker oil from a ship to which the Merchant Shipping (Civil Liability and Compensation for Oil Pollution) Act 1998 applies; or | | (b) | a threat mentioned in subsection (2) arising in relation to a potential discharge or escape of bunker oil from such a ship, |
| where that bunker oil is also persistent hydrocarbon mineral oil. |
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| (4) Where a person incurs a liability under subsection (1) or (2), the person shall also be liable for any damage or cost for which the person would be liable under subsection (1) or (2) if the references in that subsection to the territory of Singapore included the territory of any other Bunker Convention country. |
(5) Where —| (a) | as a result of any occurrence, a liability is incurred under this section by the owner of each of 2 or more ships; but | | (b) | the damage or cost of which each of the owners would be liable cannot reasonably be separated from that for which the other or others would be liable, |
| each of the owners shall be liable, jointly with the other or others, for the whole of the damage or cost for which the owners together would be liable under this section. |
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| (6) For the purposes of this section, references to the owner of a ship are references to the owner at the time of the occurrence or first of the occurrences, resulting in the discharge or escape of bunker oil from the ship or giving rise to the relevant threat of contamination, as the case may be. |
| (7) The Contributory Negligence and Personal Injuries Act 1953 applies in relation to any damage or cost for which a person is liable under this section, but which is not due to the person’s fault, as if it were due to the person’s fault. |
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| Exceptions from liability under section 3 |
4. No liability shall be incurred by the owner of a ship under section 3 by reason of any discharge or escape of bunker oil from the ship, or by reason of any relevant threat of contamination, if the owner proves that the discharge or escape, or the relevant threat of contamination, as the case may be —| (a) | resulted from an act of war, hostilities, civil war, insurrection or an exceptional, inevitable and irresistible natural phenomenon; | | (b) | was due wholly to anything done or left undone by another person, not being an employee or agent of the owner, with intent to do damage; or | | (c) | was due wholly to the negligence or wrongful act of a government or other authority in exercising its functions of maintaining lights or other navigational aids for the maintenance of which it was responsible. |
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| Restriction of liability for bunker oil pollution |
5.—(1) Where, as a result of any occurrence —| (a) | any bunker oil is discharged or escapes from a ship; or | | (b) | there arises a relevant threat of contamination, |
| then, whether or not the owner of the ship in question incurs a liability under section 3 — |
| (c) | the owner shall not be liable otherwise than under that section for any damage or cost mentioned in that section; and | | (d) | no person to whom this paragraph applies shall be liable for any such damage or cost unless it resulted from anything done or omitted to be done by the person either with intent to cause any such damage or cost or recklessly and in the knowledge that any such damage or cost would probably result. |
(2) Subsection (1)(d) applies to —| (a) | any servant or agent of the owner of the ship; | | (b) | any person not falling within paragraph (a) but employed or engaged in any capacity on board the ship or to perform any service for the ship; | | (c) | any person performing salvage operations with the consent of the owner of the ship or on the instructions of a competent public authority; | | (d) | any person taking any of the measures mentioned in section 3(1)(b) or (2)(a); and | | (e) | any servant or agent of a person falling within paragraph (c) or (d). |
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(3) The liability of the owner of a ship under section 3 for any impairment of the environment is taken to be a liability only in respect of —| (a) | any resulting loss of profits; and | | (b) | the cost of any reasonable measures of reinstatement actually taken or to be taken. |
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| Limitation of liability under section 3 |
6.—(1) Where, as a result of any occurrence, the owner of a ship incurs a liability under section 3 by reason of a discharge or an escape or by reason of any relevant threat of contamination, then, subject to subsection (4), the owner may limit that liability in accordance with and in the manner provided in section 136 of the Merchant Shipping Act 1995, and if the owner does so the owner’s liability (being the aggregate of his liabilities under section 3 resulting from the occurrence) shall not exceed the relevant amount.| (2) In subsection (1), “the relevant amount” means the limit of liability calculated in accordance with section 136 of the Merchant Shipping Act 1995. |
| (3) The Authority may, with the approval of the Minister, by order in the Gazette, make such amendments to subsection (2) as may be appropriate for the purpose of giving effect to the entry into force of any amendment of the limits of liability laid down in Article 6 of the Bunker Convention. |
| (4) Subsection (1) does not apply in a case where it is proved that the discharge or escape, or the relevant threat of contamination (as the case may be) resulted from anything done or omitted to be done by the owner either with intent to cause any such damage or cost as is mentioned in section 3 or recklessly and in the knowledge that any such damage or cost would probably result. |
| (5) For the purposes of section 136 of the Merchant Shipping Act 1995, any liability incurred under section 3 is deemed to be a liability to damages in respect of such damage to property mentioned in paragraph 1(a) of Article 2 of the Convention on Limitation of Liability for Maritime Claims 1976. |
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7.—(1) Where the owner of a ship has or is alleged to have incurred a liability under section 3, the owner may apply to the Court for the limitation of that liability to an amount determined in accordance with section 6.(2) If on such an application the Court finds that the applicant has incurred such a liability and is entitled to limit it, the Court, after determining the limit of liability and directing payment into Court or to the Authority of the amount of that limit, is to —| (a) | determine the amounts that would, apart from the limit, be due in respect of the liability to the several persons making claims in the proceedings; and | | (b) | direct the distribution of the amount paid into Court or to the Authority (or, as the case may be, so much of it as does not exceed the liability) among those persons in proportion to their claims, subject to the provisions of this section. |
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(3) A payment into Court or to the Authority of the amount of a limit determined under this section must be made in Singapore dollars, and —| (a) | for the purpose of converting such an amount from special drawing rights into Singapore dollars, one special drawing right is treated as equal to such a sum in Singapore dollars as the International Monetary Fund has fixed as being the equivalent of one special drawing right for —| (i) | the day on which the determination is made; or | | (ii) | if no sum has been so fixed for that day, the last day before that day for which a sum has been so fixed; |
| | (b) | a certificate given by or on behalf of the Minister for Finance stating —| (i) | that a particular sum in Singapore dollars had been so fixed for the day on which the determination was made; or | | (ii) | that no sum had been so fixed for that day and that a particular sum in Singapore dollars had been so fixed for a day which was the last day for which a sum had been so fixed before the day on which the determination was made, |
| is conclusive evidence of those matters for the purposes of this Part; and |
| | (c) | a document purporting to be such a certificate shall, in any proceedings, be received in evidence and, unless the contrary is proved, is deemed to be such a certificate. |
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| (4) No claim may be admitted in proceedings under this section unless it is made within such time as the Court may direct or such further time as the Court may allow. |
(5) Where any sum has been paid in or towards satisfaction of any claim in respect of the damage or cost to which the liability extends —| (a) | by the owner or the person referred to in section 14 as “the insurer”; or | | (b) | by a person who has or is alleged to have incurred a liability, otherwise than under section 3, for the damage or cost and who is entitled to limit the person’s liability in connection with the ship by virtue of section 136 of the Merchant Shipping Act 1995, |
| the person who paid the sum shall, to the extent of that sum, be in the same position with respect to any distribution made in proceedings under this section as the person to whom it was paid would have been. |
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| (6) Where the person who incurred the liability has voluntarily made any reasonable sacrifice or taken any other reasonable measures to prevent or reduce damage to which the liability extends or might have extended, the person shall be in the same position with respect to any distribution made in proceedings under this section as if the person had a claim in respect of the liability equal to the cost of the sacrifice or other measures. |
| (7) The Court may, if it thinks fit, postpone the distribution of such part of the amount to be distributed as it considers appropriate having regard to any claims that may later be established before a court of any country outside Singapore. |
| (8) The proportions in which any amount is distributed in accordance with subsection (2)(b) are not affected by any lien or other right in respect of any ship or other property. |
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| Restriction on enforcement of claims after establishment of limitation fund |
8. Where the Court has found that a person who has incurred a liability under section 3 is entitled to limit that liability to any amount and the person has paid into Court or to the Authority a sum not less than that amount —| (a) | the Court shall order the release of any ship or other property arrested in connection with a claim in respect of that liability or any security given to prevent or obtain release from such an arrest; and | | (b) | no judgment or decree for any such claim shall be enforced, except so far as it is for costs, |
| if the sum paid into Court or to the Authority, or such part thereof as corresponds to the claim, will be actually available to the claimant or would have been available to the claimant if the proper steps in the proceedings under section 7 had been taken. |
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| Concurrent liabilities of owners and others |
9. Where, as a result of any discharge or escape of bunker oil from a ship or as a result of any relevant threat of contamination, the owner of the ship incurs a liability under section 3 and any other person incurs a liability, otherwise than under that section, for any such damage or cost mentioned in subsection (1) or (2) of that section, then, if —| (a) | the owner has been found, in proceedings under section 7, to be entitled to limit the owner’s liability to any amount and has paid into Court or to the Authority a sum not less than that amount; and | | (b) | the other person is entitled to limit the person’s liability in connection with the ship by virtue of section 136 of the Merchant Shipping Act 1995, |
| no proceedings shall be taken against the other person in respect of the person’s liability, and if any such proceedings were commenced before the owner paid the sum into Court or to the Authority, no further steps shall be taken in the proceedings except in relation to costs. |
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| Establishment of limitation fund outside Singapore |
10. Where the events resulting in the liability of any person under section 3 also resulted in a corresponding liability under the law of another Bunker Convention country, sections 8 and 9 apply as if —| (a) | the references to sections 3 and 7 included references to the corresponding provisions of that law; and | | (b) | the references to sums paid into Court included references to any sums secured under these provisions in respect of the liability. |
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11. No action to enforce a claim in respect of a liability incurred under section 3 may be entertained by any court in Singapore unless the action is commenced —| (a) | not later than 3 years after the claim arose; and | | (b) | not later than 6 years after the occurrence, or first of the occurrences, resulting in the discharge or escape or in the relevant threat of contamination (as the case may be) by reason of which the liability was incurred. |
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| Division 2 — Compulsory Insurance |
| Compulsory insurance against liability for bunker oil pollution |
12.—(1) Subsection (2) applies to any ship having a gross tonnage greater than 1,000.(2) The ship must not enter or leave any port in Singapore or enter or leave any offshore facility in the territorial sea of Singapore and must not, if it is a Singapore ship, enter or leave any port in any other country or any offshore facility in the territorial sea of any other country, unless there is in force —| (a) | a contract of insurance or other security in respect of the ship satisfying the requirements of Article 7 of the Bunker Convention; and | | (b) | a certificate complying with subsection (3) and showing that there is in force in respect of the ship a contract of insurance or other security satisfying those requirements. |
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(3) The certificate shall be —| (a) | if the ship is a Singapore ship — a certificate issued by the Director; | | (b) | if the ship is registered in a Bunker Convention country other than Singapore — a certificate issued by or under the authority of the government of that other Bunker Convention country; and | | (c) | if the ship is registered in a country which is not a Bunker Convention country — a certificate issued by the Director or by or under the authority of the government of any Bunker Convention country other than Singapore. |
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(4) The Authority may, with the approval of the Minister, by regulations provide that certificates in respect of ships registered in any country or any specified country which is not a Bunker Convention country are, in such circumstances as may be specified in the regulations, recognised for the purposes of subsection (3)(c) if the certificates are issued by or under the authority of the government of the country designated in the regulations in that behalf; and the country that may be so designated may be either or both of the following:| (a) | the country in which the ship is registered; | | (b) | any country specified in the regulations for the purposes of this subsection. |
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| (5) Any certificate required by this section to be in force in respect of a ship must be carried in the ship and must, on demand, be produced by the master to any officer of the Authority and, if the ship is a Singapore ship, to any consular officer within the meaning of the Merchant Shipping Act 1995. |
| (6) If a ship enters or leaves, or attempts to enter or leave a port or the territorial sea in contravention of subsection (2), the master or the registered owner of the ship shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $1 million. |
| (7) If a ship fails to carry, or the master of a ship fails to produce, a certificate as required under subsection (5), the master of the ship shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000. |
| (8) If a ship attempts to leave a port in, or the territorial sea of, Singapore in contravention of this section, the ship may be detained by the Director or the officers of the Authority or any police officer or any commissioned officer on full pay in the Singapore Armed Forces. |
| (9) Section 209 of the Merchant Shipping Act 1995 applies, with the necessary modifications, to the detention of a ship under this Act. |
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13.—(1) Subject to subsection (2), if the Director is satisfied, on an application for a certificate mentioned in section 12 in respect of a Singapore ship or a ship registered in any country which is not a Bunker Convention country, that there will be in force in respect of the ship, throughout the period for which the certificate is to be issued, a contract of insurance or other security satisfying the requirements of Article 7 of the Bunker Convention, the Director may issue such a certificate to the owner.| (2) If the Director is of the opinion that there is any doubt whether the person providing the insurance or other security will be able to meet the person’s obligations thereunder, or whether the insurance or other security will cover the owner’s liability under section 3 in all circumstances, the Director may refuse to issue the certificate. |
| (3) The Director must maintain a record of any certificate issued under this section in respect of a Singapore ship which must be available for public inspection. |
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| Rights of third parties against insurers |
14.—(1) Where it is alleged that the owner of a ship has incurred a liability under section 3 as a result of any discharge or escape of bunker oil occurring, or as a result of any relevant threat of contamination arising, while there was in force a contract of insurance or other security to which a certificate mentioned in section 12 is related, proceedings to enforce a claim in respect of the liability may be brought against the person who provided the insurance or other security (called in this Act the insurer).| (2) In any proceedings brought against the insurer by virtue of this section, it is a defence (in addition to any defence affecting the owner’s liability) to prove that the discharge or escape or the relevant threat of contamination (as the case may be) was due to the wilful misconduct of the owner. |
| (3) The insurer may limit the insurer’s liability in respect of claims made against the insurer by virtue of this section in like manner and to the same extent as the owner may limit the owner’s liability but the insurer may do so whether or not the discharge or escape or the relevant threat of contamination (as the case may be) resulted from anything done or omitted to be done by the owner as mentioned in section 6(4). |
| (4) Where the owner and the insurer each apply to the Court for the limitation of the liability of the owner or the insurer (as the case may be), any sum paid into Court in pursuance of either application is treated as paid also in pursuance of the other. |
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| Division 3 — Supplementary |
| Jurisdiction of Singapore courts and registration of foreign judgments |
15.—(1) Section 3(1)(d) of the High Court (Admiralty Jurisdiction) Act 1961 is to be construed as extending to any claim in respect of a liability incurred by the owner of a ship under this Part.(2) Where —| (a) | any bunker oil is discharged or escapes from a ship but does not result in any damage caused by contamination in the territory of Singapore and no measures are reasonably taken to prevent or minimise such damage in that territory; or | | (b) | any relevant threat of contamination arises but no measures are reasonably taken to prevent or minimise such damage in the territory of Singapore, |
| no court in Singapore shall entertain any action (whether in rem or in personam) to enforce a claim arising from any relevant damage or cost — |
| (c) | against the owner of the ship; | | (d) | against any person to whom section 5(1)(d) applies, unless any such damage or cost resulted from anything done or omitted to be done by such person either with intent to cause any such damage or cost or recklessly and in the knowledge that any such damage or cost would probably result; or | | (e) | against any person taking any of the measures mentioned in subsection (3)(a) or (b), unless any such damage or cost resulted from anything done or omitted to be done by such person either with intent to cause any such damage or cost or recklessly and in the knowledge that any such damage or cost would probably result. |
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(3) In subsection (2), “relevant damage or cost” means —| (a) | in relation to any discharge or escape mentioned in subsection (2)(a), any damage caused in the territory of another Bunker Convention country by contamination resulting from the discharge or escape, or any cost incurred in taking measures to prevent or minimise such damage in the territory of another Bunker Convention country; | | (b) | in relation to any relevant threat of contamination mentioned in subsection (2)(b), any cost incurred in taking measures to prevent or minimise such damage in the territory of another Bunker Convention country; or | | (c) | any damage caused by any measures mentioned in paragraph (a) or (b). |
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| (4) Part 1 of the Reciprocal Enforcement of Foreign Judgments Act 1959 applies (whether or not it would so apply apart from this section) to any judgment given by a court in a Bunker Convention country to enforce a claim in respect of a liability incurred under any provision corresponding to section 3, and in its application to such a judgment that Part has effect with the omission of section 5(3) and (4) of that Act. |
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| Restriction on enforcement of judgments given by court in country not party to Bunker Convention |
| 16. Despite Part 1 of the Reciprocal Enforcement of Foreign Judgments Act 1959 and any rule of law relating to the recognition and enforcement of foreign judgments, any judgment given by a court in a country which is not a Bunker Convention country in respect of any liability for bunker oil pollution incurred by the owner of a ship in that country may be recognised and enforced by the Court only up to the limit of liability prescribed by section 6. |
17.—(1) Despite the other provisions of this Part, this Part does not apply in relation to any warship or any ship for the time being used by the government of any State otherwise than for commercial purposes.| (2) In relation to a ship owned by a State and for the time being used for commercial purposes, it is a sufficient compliance with section 12(2) if there is in force a certificate issued by the government of that State and showing that the ship is owned by that State and that any liability for pollution damage as defined in Article 1 of the Bunker Convention will be met up to the limit prescribed by Article 7 of the Bunker Convention. |
| (3) Every Bunker Convention State is, for the purposes of any proceedings brought in a court in Singapore to enforce a claim in respect of a liability incurred under section 3, deemed to have submitted to the jurisdiction of that court, and accordingly Rules of Court may provide for the manner in which those proceedings are to be commenced and carried on. |
| (4) Nothing in subsection (3) authorises the issue of an enforcement order against the property of any State. [Act 25 of 2021 wef 01/04/2022] |
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| Saving for recourse actions |
| 18. Nothing in this Part prejudices any claim, or the enforcement of any claim, a person incurring any liability under this Part may have against another person in respect of that liability. |
19.—(1) Where the Authority has reasonable cause to believe that any bunker oil has been discharged or has escaped from any ship or that a relevant threat of contamination has arisen, and the owner of the ship has incurred a liability under section 3 and the damage only affects, or is likely only to affect, the territory of Singapore, the Authority may detain the ship and the ship may be so detained until the owner of the ship deposits with the Authority an amount which meets the owner’s liability or provides such security which will, in the opinion of the Authority, be adequate to meet the owner’s liability.| (2) If any ship is detained under this Act and the ship proceeds to sea before it is released by the Authority, the master of the ship, and also the owner of the ship and any person who sends the ship to sea, if that owner or person is party or privy to the act of sending the ship to sea, shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $50,000 or to imprisonment for a term not exceeding 2 years or to both. |
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| 20. Any officer of the Authority or any police officer may arrest without warrant any person who has committed or whom he or she reasonably believes to have committed an offence under this Part and bring the person before a District Court or a Magistrate’s Court (as the case may be) to be dealt with according to law. |
| 21. Where the owner or the master of a ship has been convicted of an offence under the provisions of this Part and any fine imposed under this Part is not paid at the time ordered by the Court, the Court may, in addition to any powers for enforcing payment, direct the amount remaining unpaid to be levied by distress and sale of the ship, her tackle, furniture and apparel. |
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