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The 1996 Protocol to the 1976 Limitation Convention (1996 LLMC)

SSM Roundel

Steamship Mutual

Published: March 01, 1997

March 1997

(Sea Venture Volume 17) (Updated December 1999)

In May 1996, the IMO introduced a Protocol to amend the 1976 Convention on the Limitation of Liability for Maritime Claims.

The 2 main functions of the Protocol are to increase the levels of compensation available under the Limitation Convention and to introduce a streamlined procedure by which the limits can be further increased in the future.

Under the Protocol, the increased limitation amounts are as follows:-

Property claims alone:

Tonnage not exceeding 2,000 tons 1,000,000 SDR For each ton 2,001 - 30,000 400 SDR per ton For each ton 30,001 - 70,000 300 SDR per ton For each ton 70,001 upwards, without a cap 200 SDR per ton

Loss of Life and Personal injury claims:

Tonnage not exceeding 2,000 tons 2,000,000 SDR For each ton 2,001 - 30,000 800 SDR per ton For each ton 30,001 - 70,000 600 SDR per ton For each ton 70,001 upwards, without a cap 400 SDR per ton

It should be noted that the minimum limitation fund has been increased substantially to SDR 2,000,000. At higher levels, the effect of the Protocol has been to increase the levels of compensation by approximately 240%.

The Protocol has also increased the limits of liability in respect of loss of life or personal injury to passengers, from SDR 46,466 up to SDR 175,000, multiplied by the number of passengers which the vessel is authorised to carry. It has removed the cap of SDR 25,000,000 which applied to such claims under the 1976 Limitation Convention.

In addition, the Protocol specifically provides that the exemption from limitation in respect of claims for salvage and general average contributions also extends to claims for special compensation under Article 14 of the 1989 Salvage Convention.

The procedure for subsequent amendments of the compensation limits has been simplified by the adoption of the "tacit amendment procedure" which provides that any proposal which has been adopted by a 2/3rds majority will be enacted 18 months after such adoption, provided that at least 50% of the contracting states have voted on the proposal. However, amendments cannot be considered until after existing limits have been in force for at least 5 years and increases of more than 6% per annum or 300% overall are not permissible.

This Protocol will come into force 3 months after 10 states have become signatories. Since no minimum tonnage requirements have been imposed on signatories, it is anticipated that the Protocol will come into force within the next 2 to 3 years.

Based on information provided by IMO as at November 1999, the signatories/ contracting states are as set out below:

  

Signatories

(subject to ratification /acceptance)

United Kingdom 16 October 1996 France 7 February 1997 Sweden 18 February 1997 Finland 18 April 1997 Germany 25 April 1997 Canada 9 September 1997 Norway 25 September 1997 Denmark (with reservation for application to Faroe Islands and Greenland) 25 September 1997 Netherlands 29 September 1997

Contracting States

Russian Federation (accession)1 25 May 1999 United Kingdom (ratification)1 11 June 1999

Number of Contracting States: 2

See related article "Liability Limits Increase From 13 May 2004 Under 1996 LLMC  Protocol".

  

 

1 With a reservation or statement

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