Reform of the Law for Liability for Oil Pollution Damages 1 January 2020 Koichi Miyahiro Manager of Public Relations Division The Japanese Law for Liability for Oil Pollution Damages which partially revised the current law in response to International Convention on Civil Liability for Bunker Oil Pollution Damage, 2001 (Bunker Convention) and Nairobi International Convention on the Removal of Wrecks, 2007 (Wreck Removal Convention) will be enforced in 2020. This note provides an overview of the reform act. 1. Key points of the reform act P&I insurance to be compulsory Shipowners shall maintain a P&I insurance with the amount insured equal to the amount of Limits of Liability under the Shipowners’ Limitation of Liability for Maritime Claims. The reform act will expand the scope of vessels to include vessels greater than 1,000 gt for bunker oil pollution damage and vessels of 300 gt or more for damage of wrecks. Direct action to insurers Any claim for costs of bunker oil pollution or removal of wrecks may be brought by claimant directly against the P&I insurer for the shipowner. The insurer shall not invoke any defence which have been brought in the proceedings of direct action by the claimant against the insurer and can not refuse compensation due to violations of the insurance contract by the shipowner. Reciprocal approval of foreign court decisions Any judgement given by a court with jurisdiction in accordance with the Conventions shall be recognised in any contracting state. The decisions of the states are valid in Japan. By this, the judgment will be approved by other states, allowing claimant a seizure of assets and ensuring prompt compensation. 2. Background on the reform act In 2013, in the case of “AN FENG 8” a Cambodianregistered general cargo vessel which grounded in Aomori Prefecture and spilled fuel oil, the insurer refused to cover damages on the grounds of breaching the clause of risks generally excluded, claiming that shipowner had not prope