Insurer ordered to pay £6.4m for Galapagos oil spill

A British insurance company was ordered to pay $10m (£6.4m) in damages yesterday for an oil spill that has harmed the unique ecosystem of the pristine Galapagos Islands.

The Ecuadorian tanker Jessica ran aground in January 2001, spilling more than 650,000 litres of crude oil near the Pacific archipelago, a United Nations World Heritage site which is home to sea lions, iguanas and giant tortoises.

The commercial tanker's London-based insurer, Terra Nova, said its insurance policy was not valid at the time, prompting Galapagos National Park to file lawsuits against Terra Nova, the boat's owner Acotramar, and the state oil subsidiary Petrocomercial.

The superior court in the Ecuadorian city of Guayaquil ordered Terra Nova to pay the park but threw out charges against Acotramar and Petrocomercial, which also face criminal charges in the case.

Scientists say more than 60 per cent of one island's unique species, the marine iguana, were wiped out by the spill.