News item | 11-25-2022 | 4:15 pm
The cabinet has approved a bill to implement an international treaty on the transport of hazardous and noxious substances by sea (HNS treaty). This brings the establishment of an international compensation fund for major shipping accidents involving hazardous substances one step closer. Parties that suffer damage as a result of an accident involving a seagoing vessel carrying hazardous and noxious substances are better protected by this convention.
At present, ship owners who transport these types of substances by sea must already be insured against accidents. But in the event of a very major accident, the maximum coverage of the insurance may be insufficient to cover all damage and compensate victims.
The HNS Treaty (Hazardous and Noxious Substances) should change this by creating an international fund from which damage can be compensated if it exceeds what a shipowner is insured for. A maximum of around EUR 300 million in damage can be compensated from the fund.
For the treaty to enter into force, at least twelve of the countries that have signed the treaty must also have it enshrined in national law. Currently, six countries have done so. The Netherlands will ratify the treaty jointly with Belgium and Germany. France is also busy preparing for ratification. It is expected that soon enough countries will follow suit for the treaty to enter into force.
In addition to establishing a compensation fund, the treaty also obliges shipowners to take out separate insurance for HNS substances. At present, general insurance for shipping accidents is sufficient.
The international fund must be filled by companies and industry that receive HNS substances. They only have to pay when there has been an accident with HNS substances that exceeds the insurance of the ship owner.