Since 2016, the Government of Canada has been improving the rules that hold polluters responsible and help provide compensation to the people and communities affected by marine pollution. This work is part of the Oceans Protection Plan.
Under the plan, we’ve worked with Canadians across the country to improve how liability and compensation work after a marine spill.
On this page
2018 changes
The Marine Liability Act was updated in 2018 to improve Canada’s compensation regime for oil spills from ships. The changes made it easier to collect levies and made more money available to help pay for cleanup and damage.
What changed in 2018?
Before 2018, people affected by an oil spill from a ship might not have been fully compensated if their total claim was more than the shipowner and/or the Ship-source Oil Pollution Fund’s (Ship Fund) payout limit. The updated law removed that limit. Now, the Ship Fund can give unlimited compensation for claims that meet the rules.
How the fund gets money
- The fund moved from a per-shipment levy to an annual levy for receivers and exporters of large quantities of oil by sea
- If there is a large incident and the fund runs out of money, it can borrow from the Consolidated Revenue Fund
- The fund can add an extra levy if it has to pay back a loan to the Consolidated Revenue Fund
- Oil exporters (not just importers) must pay into the fund
We also updated the rules (regulations) to clarify what information oil companies must include when they submit their annual reports.
Helping with emergencies
More money is now available to support the Canadian Coast Guard.
- The Coast Guard can now get emergency funds for major spills
- They can also be reimbursed for acting early to prevent a spill
Faster payments for small claims
We created a faster process for claims under $35,000. This helps people get compensated faster. Learn more about the process for submitting small claims to the Ship Fund.
New penalties
We added fines (officially known as “administrative monetary penalties”) for breaking the law, focused on those that receive and export oil or other dangerous goods and for moving a ship that is detained:
- Up to $50,000 for a person
- Up to $250,000 for a company
2019 changes
In 2019, the Wrecked, Abandoned or Hazardous Vessels Act became law. This law helps Canada deal with ships that are wrecked, abandoned or dangerous for the environment. It also added international rules into Canadian law.
What changed in 2019?
The act:
- added the Nairobi International Convention on the Removal of Wrecks, 2007 into Canadian law
- requires owners of large ships (300 gross tonnage or more) to have insurance or money set aside to cover the cost of removing a wreck, and
- applies these rules to inland and coastal vessels – not just ocean-going ships.
The legislative project also moved the provisions relating to the International Convention on Salvage, 1989 from the Canada Shipping Act, 2001 to this law.
2023 changes
In 2023, in response to recommendations from the Canada Energy Regulator and the Impact Assessment Agency, Transport Canada reviewed the Marine Liability Act again after getting feedback from Indigenous and coastal communities.
What changed in 2023?
- The Ship Fund now covers future economic losses related to lost income and lost profit, including losses related to Indigenous fishing, hunting and harvesting. To be compensable, these losses must be very likely to happen and supported by evidence.
- The law now clearly says that shipowners are responsible for losses related to fishing, hunting, trapping or harvesting if they affect Indigenous communities or their members
Higher coverage from smaller ships
For small ships under 300 gross tonnage, compensation limits went up:
- From $1 million to $1.5 million for loss of life or injury
- From $500,000 to $750,000 for other claims
Expanded oil spill coverage
Finally, we expanded the Bunkers Convention to include non-seagoing vessels. Shipowners of larger non-seagoing vessels (over 1,000 gross tonnage) must now have insurance or enough money to cover oil spill costs.