Convention on Limitation of Liability for Maritime Claims was adopted on 19 November 1976 and entered into force on 1 December 1986. Protocol of 1996 to the Convention was adopted on 2 May 1996 and entered into force on 13 May 2004.
The 1996 Protocol substantially increases the initial amounts of compensation and also introduces a "tacit acceptance" procedure for updating these amounts.
The Convention provides for a system of limiting liability. Ship owners and salvors may limit their liability, except 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".
Under the Convention, limits of liability 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 harbor works).
The limit of liability for claims for loss of life or personal injury on ships not exceeding 2,000 gross tonnage is 2 million SDR.
For larger ships, the following additional amounts are used in calculating the limitation amount in accordance with:
Amendments to 1996 Protocol – New limits
The amendments to 1996 Protocol were adopted on 19 April 2012. Entry into force: 8 June 2015
Under the amendments to the 1996 Protocol, the limits are raised as follows:
The limit of liability for claims for loss of life or personal injury on ships not exceeding 2,000 gross tonnage is 3.02 million SDR (up from 2 million SDR).
For larger ships, the following additional amounts are used in calculating the limitation amount:- For each ton from 2,001 to 30,000 tons, 1,208 SDR (up from 800 SDR)
- For each ton from 30,001 to 70,000 tons, 906 SDR (up from 600 SDR)
- For each ton in excess of 70,000 tons, 604 SDR (up from 400 SDR).
The limit of liability for property claims for ships not exceeding 2,000 gross tonnage is 1.51 million SDR (up from 1 million SDR).
For larger ships, the following additional amounts are used in calculating the limitation amount:- For each ton from 2,001 to 30,000 tons, 604 SDR (up from 400 SDR)
- For each ton from 30,001 to 70,000 tons, 453 SDR (up from 300 SDR)
- For each ton in excess of 70,000 tons, 302 SDR (up from 200 SDR).
The daily conversion rates for Special Drawing Rights (SDRs) can be found on the International Monetary Fund IMF website www.imf.org
You can find the general terms for the Convention on Limitation of Liability for Maritime Claims here.