Liability Limits Increase From 13 May 2004 Under 1996 LLMC Protocol

February 2004

 

Amounts of compensation for maritime claims for loss of life or personal injury, and property claims, will be significantly increased from May, following the accession of Malta to the 1996 Protocol to the 1976 Convention on Limitation of Liability for Maritime Claims (LLMC).

Malta, the 10th State to accede to the 1996 Protocol, deposited its instrument of accession on 13 February 2004. This triggered the 90-day entry into force provisions so that the protocol comes into force on 13 May 2004.

The 1996 LLMC Protocol substantially increases the amount of compensation payable in the event of an incident and also introduces a "tacit acceptance" procedure for updating these amounts. This means that in future the liability limits can be raised with a given date for entry into force after consideration and adoption by IMO's Legal Committee, providing a specified number of objections are not received. This should ensure that, if the need arises, the limits can be increased without undue delay.

Claims for Loss of Life or Personal Injury

Under the 1996 LLMC Protocol the limit of liability for claims for loss of life or personal injury for ships not exceeding 2,000 gross tons is 2 million SDR (US$3 million*). For larger ships, the following additional amounts are used in calculating the limitation amount:

For Each Gross Ton

Limitation Amount

from 2,001 to 30,000  800 SDR (US$1,200) from 30,001 to 70,000 600 SDR (US$900) in excess of 70,000 400 SDR (US$600)

Previous Limits 

Under the 1976 Convention limits were 330,000 SDR (US$499,500) for ships not exceeding 500 tons plus an additional amount based on tonnage, for each ton, as follows:

• from 501 to 3,000 tons, 500 SDR (US$750) 
• from 3,001 to 30,000 tons, 333 SDR (US$500) 
• from 30,001 to 70,000 tons, 250 SDR (US$375) 
• in excess of 70,000 tons, 167 SDR (US$251)

Property Claims

Under the 1996 LLMC Protocol, the limit of liability for property claims for ships not exceeding 2,000 gross tons is 1 million SDR (US$1.5 million). For larger ships, the following additional amounts are used in calculating the limitation amount:

For Each Gross Ton

Limitation Amount

from 2,001 to 30,000  400 SDR (US$600) from 30,001 to 70,000 300 SDR (US$450) in excess of 70,000 200 SDR (US$300)

Previous Limits 

Under the 1976 Convention the limit was 167,000 SDR (US$250,500) for ships not exceeding 500 tons plus an additional amount based on tonnage, for each ton, as follows: 

• from 501 to 30,000 tons, 167 (US$251). 
• from 30,001 to 70,000 tons, 125 SDR (US$180) 
• in excess of 70,000 tons, 83 SDR (US$125)

Background 

The LLMC was adopted on 19 November 1976 and entered into force on 1 December 1986**. It replaced the International Convention Relating to the Limitation of the Liability of Owners of Seagoing Ships, which was signed in Brussels in 1957 and came into force in 1968.

Under the LLMC, limits are specified for two types of claims - claims for loss of life or personal injury, and property claims (such as damage to other ships, property or harbour works).

The LLMC provides for a virtually unbreakable system of limiting liability. It declares that a person will only be unable to limit liability if "it is proved that the loss resulted from his personal act or omission, committed with the intent to cause such a loss, or recklessly and with knowledge that such loss would probably result".

 

Based on IMO Briefing 09/2004 of 17 February 2004

 * Using the IMF exchange rate as at 13 February 2004 of SDR1 = USD 1.50844 (www.imf.org)

** Click here for Steamship "Sea Venture" article on the LLMC

Further information is given in "Limitation Of Liability -The 1996 Protocol Comes Into Force"