Accidents involving vessels carrying oil or other hazardous and noxious substances have been in many cases the cause of spillage with devastating consequences on the local economic and the environment. This was highlighted by the Torrey Canyon incident, in March 1967, which proved that there is inadequate legal means, at international level, to cope with the problems in the recovery of the considerable expenditure involved in taking preventive measures, cleaning up and damage to the third parties and the environment. This thesis is an attempt to explore, analyse and develop a legal framework aimed at compensating and insuring against pollution liability at sea. The international response in providing liability and compensation and the role of insurance in solving these problems has been carefully considered throughout this thesis. This thesis is divided in 5 parts beginning with an introduction and ending with a conclusion and bibliography. Part one, which comprises six chapters, seeks to overview the range of legal cases whereby liability for compensation and insurance of pollution damage may be established. The role of Tort or Delict, principally Negligence, Trespass and Nuisance, in establishing liability forms section one of this part. Chapter two outlines the role of two voluntary agreements, TOVALOP and CRISTAL, in settling the question of the liability and financial cover of the casts of oil spillage by tankers. A descriptive and analytical approach, regarding the compensation and insurance, is linked to the discussion of mandatory conventional liability for oil and other noxious substances. This is considered in chapter three, chapter four and chapter five, under the MARPOL 73/78, CLC, FC and HNS in full. Chapter six considers the place of liability cover in the marine insurance market and seeks to find a place for pollution liability cover.