Insurance Claims for Singapore Oil Spill Capped at US$6 Million


The insurer for the bunker tanker involved in the oil spill in Singapore has a limit of S$8 million (US$5.9 million) for resulting claims, disclosed by Singapore’s Transport Minister Chee Hong Tat at a joint ministerial press conference on June 24, reports Container News.

About the incident

Some oil slicks floated inneighboringing Malaysia, affecting fishermen advised to file claims with the insurer, British Marine. Malaysian media estimated that up to 200 fishermen in Johor state could not fish or had equipment damaged by the oil.

The incident occurred on June 14, when the Van Oord dredger Vox Maxima went out of control and hit the bunker tanker Marine Honour, owned by Singapore-based Straits Bunkering. Marine Honour was fueling the Evergreen ship Ever Blink at Pasir Panjang Terminal when the impact damaged its cargo tank, sending 400 tonnes of fuel oil into the sea.

Should the claims exceed British Marine’s cap, affected parties can claim from the International Oil Pollution Compensation (IOPC) Fund, which has a higher cap of S$362 million (US$268 million). The IOPC Fund, aware of the oil spill, will work with local authorities to respond.

Minister for Sustainability and the Environment Grace Fu stated that over 700 cleaning personnel have removed 550 tonnes of oil-soaked sand from several beaches. The next phase of clean-ups, focusing on rock bunds, breakwaters, and oil trapped deep in sand, will be more complex and is expected to take three months. The final cleaning phase will involve using rakes and sieves to remove hardened oil from the sand on the beaches.

Chee emphasized that while the Maritime and Port Authority of Singapore acted to spray dispersants and place oil booms around Marine Honour, these measures could not fully prevent the oil from spreading due to tidal currents and waves. The Singapore government will seek to recover the clean-up costs from British Marine.

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Source: Container News