For 30 years, the Fund has been mandated to compensate victims of oil pollution damage (including costs incurred for preventive measures) caused by ships and then take action to recover the costs from the polluters or other responsible parties.
The Canadian Compensation Regime for ship-source oil pollution damage is based on the polluter-pays principle as well as on many international conventions. It covers damage caused by oil pollution (or anticipated pollution) in Canadian waters (including the exclusive economic zone), as long as the pollution emanates from an identified or unidentified ship or vessel.
The Fund may be used as a fund of last resort or of first resort; the choice is that of the claimant.
Fund of Last Resort. The claimant may file a claim against the owner of the ship responsible for oil pollution damage (up to the owner’s limit of liability) and can then submit to the Fund a claim for compensation for damages or for a portion of damages that haven’t been reimbursed to him (this could be due to the fact that the limit exceeded the owner’s liability limit, or because the owner was not financially solvent to compensate the claimant).
Fund of First Resort. The claimant may submit his claim directly to the Fund. The Administrator has the obligation of investigating and assessing the claim. If the claim is established, the Administrator will offer a settlement to the claimant, who will then have 60 days to accept the offer.
The contributors to the regime are the oil shippers and receivers in Canada. Contributors have not paid contributions since 1976 as the Fund is fully capitalized.
Contributors who are oil receivers must however file an information return no later than February 28 if the volume of contributing cargo for the preceding calendar year exceeded
(refer to Marine Liability and Information Return Regulations: http://laws-lois.justice.gc.ca/eng/regulations/SOR-2016-307/index.html)
This information return allows to determine Canada’s annual contribution to the International Fund and Supplementary Fund (this contribution is then paid directly by the Fund’s Administrator). It also allows Canada to collect the data needed in order to ratify the Convention on Hazardous and Noxious Substances.
Information returns should be filed via the portal https://stats.tc.gc.ca/HNS/Login.aspx, which is managed by Transport Canada.
Before filing their return, contributors must request the creation of an account by contacting the following address: TC.HNS-SNPD.TC@tc.gc.ca.
Our Claims Manuals are available to help you to submit a claim to the Administrator.