Economic Analysis of Liability and compensation System of Oil Tanker Pollution

From economic point of view, liability rules are efficient provided that they induce individuals to observe optimal cares & activities concurrently. Due to inefficiency of global maritime liability law in terms of oil pollution, special liability regime has been gradually evolved and Developed from 1969, which consist of some different features including Strict Liability with the Defense of Contributory Negligence, Channeling of liability of oil tanker owner and great increasing in limits of liability. As well as, damages resulting from oil pollution could be recovered by International Oil Pollution Compensation FUND of 1992 and its Supplementary Fund of 2003 which are financed by contribution levied on oil companies. In this paper, the effects of determining financial limits & channeling of liability rle on tanker owners 'motivations to take optimal care, As well as, reconstruction of financial contribution mechanism of the FUNDs so that contributions are more risk related & generally speaking, analysis of this legal system in prevention of loss has been surveyed.