The 1976 LLMC Convention sets specified limits of liability for certain types of claims against shipowners:
• 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, wreck removal, pollution damage, etc.
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’.
In the aftermath of the incident with the Pacific Adventurer, which occurred in the waters of southern Queensland in March 2009, it appeared that the limits of liability, as calculated under LLMC Protocol 96 for a bunker fuel oil spill, fell significantly short of the cost of responding to the incident.
Taking into account the experience of historic claims, as well as the impact of inflation rates, a proposal to increase the limits in the LLMC Protocol 1996 was submitted to IMO by 20 States Parties. Subsequently, IMO’s Legal Committee adopted resolution LEG.5(99) containing revised limits, when it met for its 99th session.
The LLMC Protocol has 52 Contracting States, which between them represent 58.40% of the world merchant shipping tonnage (as at 12 May 2016).
Foreword
Convention on Limitation of Liability for Maritime Claims, 1976
Chapter I The right of limitation
Article 1 Persons entitled to limit liability
Article 2 Claims subject to limitation
Article 3 Claims excepted from limitation
Article 4 Conduct barring limitation
Article 5 Counterclaims
Chapter II Limits of liability
Article 6 The general limits
Article 7 The limit for passenger claims
Article 8 Unit of Account
Article 9 Aggregation of claims
Article 10 Limitation of liability without constitution of a limitation fund
Chapter III The limitation fund
Article 11 Constitution of the fund
Article 12 Distribution of the fund
Article 13 Bar to other actions
Article 14 Governing law
Chapter IV Scope of application
Article 15
Chapter V Final Clauses
Article 16 Signature, ratification and accession
Article 17 Entry into force
Article 18 Reservations
Article 19 Denunciation
Article 20 Revision and amendment
Article 21 Revision of the limitation amounts and of Unit of Account or monetary unit
Article 22 Depositary
Article 23 Languages
Protocol of 1996 to amend the Convention on Limitation of Liability for Maritime Claims, 1976 as amended by resolution LEG.5(99)
Article 1
Article 2
Article 3
Article 4
Article 5
Article 6
Article 7
Article 8 Amendment of limits
Article 9
Article 10 Signature, ratification, acceptance, approval and accession
Article 11 Entry into force
Article 12 Denunciation
Article 13 Revision and amendment
Article 14 Depositary
Article 15 Languages
Consolidated text of the substantive provisions of the Convention on Limitation of Liability for Maritime Claims, 1976 as amended by the 1996 Protocol and including its amended limits of liability
Chapter I The right of limitation
Article 1 Persons entitled to limit liability
Article 2 Claims subject to limitation
Article 3 Claims excepted from limitation
Article 4 Conduct barring limitation
Article 5 Counterclaims
Chapter II Limits of liability
Article 6 The general limits
Article 7 The limit for passenger claims
Article 8 Unit of Account
Article 9 Aggregation of claims
Article 10 Limitation of liability without constitution of a limitation fund
Chapter III The limitation fund
Article 11 Constitution of the fund
Article 12 Distribution of the fund
Article 13 Bar to other actions
Article 14 Governing law
Chapter IV Scope of application
Article 15
As a specialized agency of the United Nations, IMO is the global standard-setting authority for the safety, security and environmental performance of international shipping. Its main role is to create a regulatory framework for the shipping industry that is fair and effective, universally adopted and universally implemented.
In other words, its role is to create a level playing-field so that ship operators cannot address their financial issues by simply cutting corners and compromising on safety, security and environmental performance. This approach also encourages innovation and efficiency.
Shipping is a truly international industry, and it can only operate effectively if the regulations and standards are themselves agreed, adopted and implemented on an international basis. And IMO is the forum at which this process takes place.
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