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1996 Protocol to the 1976 Convention on Limitation of Liability for Maritime Claims

12 March 2004 No.03-021
The 1996 Protocol to the 1976 Convention on Limitation of Liability for Maritime Claims (96LLMC) will enter into force on 13 May 2004. This is because the tenth state, 'Malta', has acceded to the 96LLMC. Malta's accession on 13 February 2004 triggered the entry into force of the protocol 90 days after that date.

Countries in which the 96 LLMC will enter into force on 13th May 2004 are Australia, Denmark, Finland, Germany, Malta, Norway, the Russian Federation, Sierra Leone, Tonga and the United Kingdom.

The purpose of this protocol is to substantially increase the amount of compensation payable (by about 200% to 240%) and to introduce a "tacit acceptance" procedure for the purpose of quickly giving effect to any subsequent amendments to the protocol. This means that the amount of limitation of liability under the 96LLMC can be amended as necessary and an amendment can be adopted by the Legal Committee of the International Maritime Organization (IMO) without the contracting states having to ratify, accept, approve or accede to the change. Under the 76LLMC, similar amendments can only be made in limited cases.

The current amounts of limitation of liability under the Conventions are as follows;-
96LLMC 76LLMC
1) Liability for claims for loss of life or personal injury 1) Liability for claims for loss of life or personal injury
    a)Ships not exceeding 2,000 G/T:
    a)Ships not exceeding 500 G/T:
2 million SDR 333,000 SDR
    b)For larger ships, the following additional amounts are used in calculating the limitation amount:
    b)For larger ships, the following additional amounts are used in calculating the limitation amount:
    *For each ton from 2,001 to 30,000 tons:
    *For each ton from 501 to 3,000 tons:
800 SDR 500 SDR
    *For each ton from 30,001 to 70,000 tons:
    *For each to from 3,001 to 30,000 tons:
600 SDR 333 SDR
    *For each ton in excess of 70,000 tons:
    *For each ton from 30,001 to 70,000 tons:
400 SDR 250 SDR
    *For each ton in excess of 70,000 tons:
167 SDR
2) Liability for claims other than 1) and 3) 2) Liability for claims other than 1) and 3)
    a)Ships not exceeding 2,000 G/T:
    a) Ships not exceeding 500 G/T:
1 million SDR 167,000 SDR
    b) For larger ships, the following additional amounts are used in calculating the limitation amount:
    b) For larger ships, the following additional amounts are used in calculating the limitation amount :
    *For each ton from 2,001 to 30,000 tons:
    * For each to from 501 to 30,000 tons:
400 SDR 167 SDR
    *For each ton from 30,001 to 70,000 tons:
    *For each ton from 30,001 to 70,000 tons:
300 SDR 125 SDR
    *For each ton in excess of 70,000 tons:
    *For each ton in excess of 70,000 tons:
200 SDR 83 SDR
3) Liability for loss of life or personal injury to passengers 3) Liability for loss of life or personal injury to passengers
    175,000 SDR multiplied by the number of passengers which the ship is authorized to carry according to ship's certificate
    46,666 SDR multiplied by the number of passengers which the ship is authorized to carry according to ship's certificate, but not exceeding 25 million SDR.

Note: Where the amount calculated in 1) is insufficient to pay the claims in 1) in full, the amount calculated in 2) shall be available for payment of the unpaid balance of claims under 1) and such unpaid balance shall rank rateably with claims under 2).
(FYI:1SDR=JPY 162.13=USD 1.47 as of 11 March 2004)

The "Bunker Convention", the "HNS Convention" and the "Athens Protocol 2002" are in the process of being adopted and coming into force. These will impose a heavier burden on shipowners than ever before, so would you please pay special attention to any developments on the entry into force of these conventions and protocols.

Encls : The amount of limitation of liability under 96LLMC and 76LLMC