Answer
Under the International Convention on Civil Liability for Oil Pollution Damage, 1992 (CLC), "taking" CLC insurance is a two-step legal and operational process. The registered shipowner does not buy insurance directly from a government; instead, they secure third-party liability insurance from an approved insurer to receive a "Blue Card," which is then submitted to the Flag State Administration to issue the official CLC Certificate.
Step 1: Determine Applicability
- Applicable Ships: Any oil tanker carrying more than 2,000 tonnes of persistent oil (e.g., crude oil, heavy fuel oil, lubricating oil, heavy diesel) as cargo in bulk.
- Statutory Requirement: The ship cannot legally enter or leave ports, offshore terminals, or territorial waters of any State Party to the 1992 CLC Protocol without carrying a valid CLC Certificate on board.
Step 2: Obtain P&I Coverage and Blue Card
- Apply to an Approved P&I Club: Secure primary pollution liability cover through an International Group (IG) P&I Club (or an approved non-IG insurer recognized by your Flag State).
- Verify Financial Security Limits: Ensure the cover meets or exceeds the maximum liability limits under Article V of the 1992 CLC Protocol based on the vessel's Gross Tonnage (GT).
- Request a CLC Blue Card: Upon confirmation of cover, request an electronic Blue Card from the P&I Club. The Blue Card acts as verified proof of financial security and is addressed to the specific Flag State Administration issuing the certificate.
Step 3: Apply to Flag State Administration for the CLC Certificate
- Submit Application: Submit an official application to your vessel's Flag State (e.g., Directorate General of Shipping for Indian-flagged vessels under Section 352N of the Merchant Shipping Act, MCA for UK, LMA for Liberia, etc.).
- Required Documents:
- Electronic Blue Card issued by the P&I Club.
- Complete vessel particulars (Vessel Name, IMO Number, Port of Registry, Gross Tonnage).
- Registered Owner's legal name and principal place of business.
- Proof of fee payment (prescribed flag authority fee).
- The Administration verifies that the insurance/security meets CLC Article VII requirements.
- The Administration then issues the statutory “Certificate of Insurance or Other Financial Security in Respect of Civil Liability for Oil Pollution Damage”, commonly called the CLC Certificate.
- For Non-Convention Flagged Ships: If a ship is registered under a flag state that is not party to CLC 1992, the owner must apply to a designated State Party authority (e.g., UK MCA or Bahamas Maritime Authority) to obtain a CLC certificate for trading in convention waters.
Step 4: Onboard Carriage and Renewal
- Validity: The certificate is issued for a maximum period of 12 months, aligned precisely with the P&I policy period (typically matching the P&I renewal cycle ending 20th February each year).
- Carriage Requirements: The valid CLC Certificate (or official electronic certificate with verifiable QR/UTN code) must be placed in the ship’s official documentation file for Port State Control (PSC) inspection.
- Penalties: Failure to produce a valid certificate leads to immediate vessel detention, commercial delays, and statutory fines under national legislation.