Answer
Under the 1992 Civil Liability Convention (CLC), the strict liability and the statutory obligation to maintain insurance rests squarely on the Registered Owner of the vessel, not the bareboat charterer.
However, in practical maritime operations, the financial responsibility is routinely shifted through the charter party agreement.
1. The Legal Reality (Who the IMO/Flag State Holds Liable)
Article I(3) of the CLC 1992 explicitly defines the liable party:
"Owner" means the person or persons registered as the owner of the ship or, in the absence of registration, the person or persons owning the ship.
The Insurance mandate: Every oil tanker carrying more than 2,000 tonnes of persistent oil in bulk must carry a CLC Certificate (Certificate of Insurance or Other Financial Security). The name appearing on this certificate as the insured must be the Registered Owner.
The "Channelling" Clause (Article III, Para 4): To protect maritime commerce and clarify recovery paths for victims, the CLC 1992 deliberately "channels" all strict pollution liability to the registered owner. It explicitly exempts a long list of parties from direct claims under the convention, specifically naming:
The crew, master, or pilots.
The charterer (including a bareboat charterer), manager, or operator.
Therefore, if an oil spill occurs, the affected coastal state will sue the Registered Owner and their P&I Club directly under the CLC, regardless of whether the ship was bareboat chartered.
2. The Commercial Reality (How It Works via Contract)
While the legal liability rests on the owner, a bareboat charter means the charterer has full operational control and pays all running expenses (OpEx). Under standard bareboat forms like BIMCO BARECON 2001 / 2017:
P&I Entry: The bareboat charterer is typically required to arrange and pay for the Protection and Indemnity (P&I) insurance for the vessel.
Co-Assured Status: When the bareboat charterer secures this P&I coverage, they will have the Registered Owner named as a co-assured on the policy.
Issuance of the Blue Card: The P&I Club issues a document called a "Blue Card" as proof of oil pollution liability coverage. This Blue Card is issued in the name of the Registered Owner (or jointly with the charterer) so that the Flag State can issue the statutory CLC Certificate.
Indemnity: If the owner is sued under the CLC for a spill caused by the charterer's operations, the owner seeks indemnity through the P&I coverage paid for by the charterer, or directly via the charter-party indemnity clauses.
Comparison: CLC vs. Other Pollution Conventions
In an MMD Oral Exam, surveyors often test if you confuse CLC with newer conventions. Note how the definition of "owner" expands in later regulations:
| Convention | Who is Strictly Liable / Must Hold Insurance? | Includes Bareboat Charterer? |
|---|---|---|
| CLC 1992 (Persistent Cargo Oil) | Registered Owner only | No (Channelled away from charterer) |
| Bunker Convention 2001 (Fuel Oil Pollution) | "Shipowner" broadly defined | Yes (Registered owner, bareboat charterer, manager, and operator are jointly & severally liable) |
| Wreck Removal Convention 2007 (Nairobi) | "Registered Owner" | No (Direct statutory obligation falls on the registered owner) |
⚓ MMD Oral Exam Bulletproof Answer
"Sir, under Article I of the CLC 1992, the statutory liability and obligation to carry compulsory insurance lies solely on the Registered Owner. The convention features a channelling provision that explicitly insulates the bareboat charterer from direct statutory claims. However, under commercial bareboat terms like BARECON, the bareboat charterer is contractually obligated to pay for the P&I insurance and must take out a Blue Card that names the Registered Owner as an insured party, enabling the Flag State to issue the vessel's CLC Certificate."