Amendments to increase the limits of liability in the 1996 Protocol to amend the Convention on Limitation of Liability for Maritime Claims, 1976 (LLMC Protocol 1996) entered into force on June 8, the International Maritime Organization (IMO) reports.
The amendments raised the amount claimable for loss of life or personal injury on ships (not exceeding 2,000 gross tonnage) to 3.02 million Special Drawing Rights (SDR), up from 2 million SDR.
For larger ships, the following additional amounts are used in calculating the limitation amount:
The 1976 LLMC Convention sets specified limits of liability for claims for loss of life or personal injury, and other claims, such as property claims (including damage to other ships, property or harbour works), delay, bunker spills, pollution damage, etc.
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:
The convention also allows for shipowners and salvors to 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 loss, or recklessly and with knowledge that such loss would probably result.”
Taking into account the experience of historic claims, as well as the impact of inflation rates, the limits in the LLMC Protocol 1996 were raised and subsequently adopted in 2012 by IMO’s Legal Committee when it met for its 99th session, following a proposal to increase the limits submitted by 20 State Parties to the LLMC Protocol.
The LLMC Protocol has 50 Contracting States, which between them represent 57.41% of the world merchant shipping tonnage, as at June 8, 2015.
The daily conversion rates for Special Drawing Rights (SDRs) can be found here.