STEAMSHIP MUTUAL UNDERWRITING ASSOCIATION LIMITED Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (Registered in England and Wales – Registration number 105461. PRA and FCA registration number 202548) MANAGERS: STEAMSHIP P&I MANAGEMENT LLP SPIM is an appointed representative of Steamship Insurance Management Services Limited which is authorised and regulated by the Financial Conduct Authority (Registered in England and Wales – Registration Number OC376859. FCA registration number 597046) Club Circular IOPC Funds Amended Guidance for Member States on the definition of ‘ship’ under the 1992 Civil Liability Convention (1992 CLC) December 2025 Dear Members At the November 2025 Sessions of the IOPC Funds’ Governing Bodies, the Executive Committee of the IOPC Funds approved a new footnote for inclusion in the IOPC Funds’ publication ‘Guidance for Member States – Consideration of the definition of ‘ship’ under the 1992 Civil Liability Convention’. The footnote sets out guidance on a standard procedure for determining when a ship which can serve as a qualifying ship under both the 1992 CLC and the 2001 Bunkers Convention, ceases to be a “ship” under the 1992 CLC. This Circular provides Members with an overview of the reason for the change and guidance for tankers that switch between MARPOL Annex I and MARPOL Annex II cargoes. Legal framework Overview of compensation regime for oil pollution damage from tankers carrying persistent oil The 1992 CLC, 1992 Fund Convention and 2003 Supplementary Fund Protocol establish a liability regime for pollution damage caused by spills of persistent oil from tankers, which occur in the territory or exclusive economic zone of a State Party to the respective Convention. STEAMSHIP MUTUAL UNDERWRITING ASSOCIATION LIMITED Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (Registered in England and Wales – Registration number 105461. PRA and FCA registration number 202548) MANAGERS: STEAMSHIP P&I MANAGEMENT LLP SPIM is an appointed representative of Steamship Insurance Management Services Limited which is authorised and regulated by the Financial Conduct Authority (Registered in England and Wales – Registration Number OC376859. FCA registration number 597046) The 1992 CLC governs liability for oil pollution damage under which the registered owner is held strictly liable for pollution damage caused by the escape or discharge of persistent oil from the ship. In return for this strict liability, the registered owner is able to limit its liability based on the size of the ship up to a maximum of 89,770,000 Special Drawing Rights (SDR). Above this limit, the 1992 Fund Convention establishes a regime for compensating victims where the 1992 CLC is either not available or inadequate up to a maximum of 203 million SDR. The Supplementary Fund provides additional compensation beyond the amount available under the 1992 Fund, giving a total amount of compensation for each incident of 750 million SDR. Both these layers are financed by levies on the receivers of oil in contracting states. When is a tanker a “ship” under the 1992 CLC Article 1(1) of the 1992 CLC defines a “ship” as: “any sea-going vessel and seaborne craft of any type whatsoever constructed or adapted for the carriage of oil in bulk as cargo, provided that a ship capable of carrying oil and other