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Liability Risk and Insurance

Dirty business

As the beaches of Galicia are coated with oil, still leaking from the Prestige at mid-December and leading to a 500km coastal fishing ban, the Organisation for Economic Co-operation and Development (OECD) addresses the raising of shipping standards among its 30 members. Guidelines, which could remove insurance cover from shipowners who know their vessels are substandard, are under consideration as is the promotion of compulsory insurance against third party losses, and an international system of licensing. The OECD is also looking at the possibility of incentives for responsible shipowners, boosting the availability and flow of information and pressure on classification societies to ensure appropriate standards.

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