Merchant Shipping (Oil Pollution) Act 1994, No. 515

This Act makes provision in matter of civil liability for oil pollution caused by merchant ships. As a general rule, where, as a result of an incident, any oil is discharged or escapes from a ship, the owner of the ship shall be liable for any pollution damage caused within any area of Malaysia. In addition, the owner of the ship shall also be liable for any pollution damage caused to any area of any other country which is a party to the International Convention on Civil Liability for Oil Pollution Damage of 1969. If oil has been discharged or has escaped from two or more ships, the owners of all the ships involved shall be jointly and severally liable for all the pollution damage which cannot be reasonably separated (sect. 3). Sections 4, 5 and 6 regard exemptions, restriction and limitation of such liability respectively. Insurance against liability for pollution shall be compulsory in respect of any ship carrying in bulk a cargo of more than two thousand tons of oil (sect. 11). Part III refers to the International Oil Pollution Compensation Fund which was established by the International Convention on the Establishment of and International Fund for Compensation for Oil Pollution Damage. The Fund shall be liable for pollution damage in any area of Malaysia if the person suffering such damage has been unable to obtain full compensation on the grounds described by Section 19. Further provisions deal with jurisdiction, effect of judgements, enforcement and offences. The First Schedule indicates the overall limit on liability of Fund. The Second Schedule lists out the State Parties to the International Convention on Civil Liability for Oil Pollution Damage.