Alternative Means and Its Role in Covering the Damages of Environmental Pollution by Oil

Abstract

Oil pollution is an ever-present threat to the environment because it severely harms all aspects of the environment. Yet, oil companies have the ability and influence to escape from their responsibilities of 'eradicating the impacts of pollution'. Sometimes the volume of the pollution may be so large and beyond the capabilities of an oil company to compensate the affected people and areas or clear the effects of oil pollution. Thus, compulsory insurance schemes should be available in the oil-producing countries, and in the absence of such a scheme, recourse to the financial legislation will be necessary to compensate for the damage caused to the environment. On that basis, this paper explains the term ‘insurance’ in general and then focuses on the compulsory insurance and compensation funds as a means of compensation for the damage particularly caused by the oil companies. Moreover, it discusses the possibility of forcing the oil companies to take their responsibilities and participate in financing the environmental fund. For this purpose, the paper takes both comparative and analytical approaches between the Iraqi, Egyptian, and some other countries' laws. Finally, the paper consists of two chapters, which are also divided into two sections each, followed by the conclusion and recommendations.