The CEO of a Bermuda company has warned the US Oil Pollution Act 1990 could make US oil spills uninsurable.

CEO of London & Overseas Freighters, Mr. Miles Kulukundis, speaking at the 125th anniversary dinner of the world's largest protection and indemnity club, said the open ended liabilities falling on the industry have the potential to wipe out ship owners and destroy the insurance system necessary to cover oil pollution.

Mr. Kulukundis was speaking at the Guildhall celebration for the United Kingdom Mutual Steam Ship Assurance Association. He is chairman.

UK shipping publication Lloyd's List reported he said the US should be aware the legislation is not built on a firm footing and the liability regime embodied in the legislation is not sustainable in the face of an adverse claims experience. It is not, he said, in the long-term interest of the US people.

Mr. Kulukundis called for a consensus to limit the exposure of a P&I Club member. He said the liability environment had become too risky to support the pooling of potentially catastrophic claims without limit. And the cost of funding a multi-billion-dollar claim would effect the finances of every member of a club.

He said some owners would be embarrassed or even bankrupted and large and small members of the UK club felt that unlimited cover was unacceptable.