The 1996 HNS Convention is modelled on the IOPC
Fund regime and establishes a two-tier system for
compensation to be paid in the event of pollution
incidents involving HNS such as chemicals. Tier
one provides for shipowner liability, backed by
compulsory insurance cover. Tier two provides
for compensation from a fund, financed through
contributions from the receivers of HNS in cases
when the shipowner’s insurance does not cover a
given HNS incident or is insufficient to cover the
claim.