Abstract A new legal system of strict liability combined with compulsory insurance regime has been adopted by the International Maritime Organization (IMO) as a major important principle for the International Convention on Civil Liability for Oil Pollution Damage. According to the Maritime International Conventions, shipowners are obligated to insure Protection & Indemnity (P&I) insurance and meanwhile the pollution victim has right of direct action against insurer. By analyzing the legislation trend of the Maritime International Conventions, this paper presents the concept of compulsory liability insurance regime as well as the insurer’s defenses. In reviewing the relevant domestic regulations in Taiwan, this paper makes recommendations on how to improve our domestic regulations in the near future.