(1) Where any person suffering pollution damage is unable to obtain full and adequate compensation for the damage under the Civil Liability Convention, the Fund shall be liable to pay compensation to such person, if,---
(a) no liability for the damage arises under the provisions of the Civil Liability Convention; or
(b) the ship owner liable for the damage under the provisions of the Civil Liability Convention is financially incapable of meeting his obligations in full and any financial security that may be provided under that Convention does not cover or is insufficient to satisfy the claims for compensation for the damage and the person suffering damage has taken all reasonable steps to pursue the legal remedies available to him; or
(c) the damage exceeds the ship owner's liability under the Civil Liability Convention.
(2) The expenses incurred or sacrifices made by the ship owner voluntarily to prevent or minimise pollution damage shall be treated as pollution damage for the purposes of this section.
(3) The Fund shall incur no obligation under sub-section (1) if,---
(a) it is proved that the pollution damage resulted from an act of war, hostilities, civil war or insurrection or was caused by oil which has escaped or been discharged from a warship or other ship owned or operated by a State and used at the time of the incident, only on Government noncommercial service; or
(b) the claimant fails to prove that the damage resulted from an incident involving one or more ship.
(4) If the Fund proves that the pollution damage resulted wholly or partly either from an act or omission done with the intent to cause damage by the person who suffered the damage or from the negligence of that person, the Fund may be exonerated wholly or partly from its obligation to pay compensation to such person.
(5) The Fund shall in any event (except in respect of preventive measures), be exonerated to the extent the ship owner may have been exonerated under the Civil Liability Convention.
(a) no liability for the damage arises under the provisions of the Civil Liability Convention; or
(b) the ship owner liable for the damage under the provisions of the Civil Liability Convention is financially incapable of meeting his obligations in full and any financial security that may be provided under that Convention does not cover or is insufficient to satisfy the claims for compensation for the damage and the person suffering damage has taken all reasonable steps to pursue the legal remedies available to him; or
(c) the damage exceeds the ship owner's liability under the Civil Liability Convention.
(2) The expenses incurred or sacrifices made by the ship owner voluntarily to prevent or minimise pollution damage shall be treated as pollution damage for the purposes of this section.
(3) The Fund shall incur no obligation under sub-section (1) if,---
(a) it is proved that the pollution damage resulted from an act of war, hostilities, civil war or insurrection or was caused by oil which has escaped or been discharged from a warship or other ship owned or operated by a State and used at the time of the incident, only on Government noncommercial service; or
(b) the claimant fails to prove that the damage resulted from an incident involving one or more ship.
(4) If the Fund proves that the pollution damage resulted wholly or partly either from an act or omission done with the intent to cause damage by the person who suffered the damage or from the negligence of that person, the Fund may be exonerated wholly or partly from its obligation to pay compensation to such person.
(5) The Fund shall in any event (except in respect of preventive measures), be exonerated to the extent the ship owner may have been exonerated under the Civil Liability Convention.
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More sections of this act
Section 1 · Short title and commencement.Section 2 · Application of Act.Section 3 · Definitions.Section 4 · Establishment of National Shipping Board.Section 5 · Constitution of Seafarer’s Welfare Board.Section 6 · Power to make rules.Section 7 · Director-General of Maritime Administration.Section 8 · Officers.India Code, Government of India. Text fetched 25 Oct 2026. Check the linked official text and subsequent notifications when applying a provision.