Navigating The Legal Currents – Marine Insurance’s Role in Mitigating Oil Pollution Along India’s Coastline

Abstract

India’s extensive coastline, spanning over 7,500 kilometers, is increasingly exposed to the risk of oil pollution due to growing offshore oil exploration and maritime trade activities. This research examines the role of marine insurance as a tool for mitigating the financial and environmental consequences of oil spills within Indian jurisdiction. It critically analyzes the existing legal and insurance frameworks, highlighting key deficiencies such as in the liability limits under the Merchant Shipping Act, 1958, and the limited implementation of international conventions like the 1992 Civil Liability Convention (CLC). A comparative analysis with jurisdictions such as the United States and the European Union reveals more robust mechanisms, including higher liability thresholds, specialized compensation funds, and comprehensive insurance mandates. The study recommends that India adopt similar reforms by mandating insurance for high-risk maritime operations, establishing a dedicated oil spill compensation fund, and acceding to international instruments such as the Supplementary Fund Protocol (2003). These reforms are essential to enhance India’s marine risk governance, improve compensation mechanisms, and ensure timely and adequate responses to incidents of oil pollution