OIL Announces New OPOL Endorsement
At Oil Insurance Ltd.’s [OIL's] 2012 Annual General Meeting [AGM] held on March 28 at the Fairmont Southampton Hotel in Bermuda, OIL announced a new OIL/OPOL endorsement that allows members to use the OIL policy to certify Evidence of Financial Responsibility with OPOL.
At the Board of Director’s meeting prior to the AGM, the directors of OIL approved a new Offshore Pollution Liability Association [OPOL] endorsement allowing members to satisfy OPOL’s new Evidence of Financial Responsibility requirements that come into play in 2012.
Since the commencement of OPOL in 1974, OIL has provided its members with an OIL/OPOL endorsement allowing its members to be compliant with OPOL’s strict liability requirements.
OPOL’s website states that “Currently, all offshore operators active in exploration and production on the UK Continental Shelf are party to a voluntary oil pollution compensation scheme known as OPOL. OPOL Limits of Liability have been increased over the intervening years to the current US$ 250 million per incident.
“The energy companies that are party to the agreement have to establish financial responsibility to meet claims arising under OPOL by producing evidence of insurance, self-insurance or other satisfactory means.”
OIL’s George Hutchings commented, “The new OIL/OPOL endorsement specifically dedicates $250 million of limit per operator for OPOL incidents and will preserve that limit until liability is determined as defined by OPOL. Furthermore, it also allows for OPOL certification even if an OIL member has a deductible that is greater than the OPOL maximum of $10 million. And like the prior endorsements dating back to 1974, the new endorsement will not require a member to incur any additional cost when electing it.”
“As a mutual organization, we remain committed to supporting the needs of our members and finding a solution that addresses OPOL’s new and evolving requirements. We are certainly pleased with the outcome. The UK brokerage community has already indicated to us that this endorsement will be an attractive feature to both existing and prospective members.”
