Limitation of liability is a legal principle that allows a person or entity to limit their liability for damages in certain circumstances.
In maritime law, limitation of liability is used to protect shipowners and other parties involved in shipping from being held liable for large sums of money in the event of an accident.
What is LLMC and what is its purpose?
The International Convention on Limitation of Liability for Maritime Claims (LLMC) is an international treaty that establishes limits on the liability of shipowners for maritime claims. The LLMC was adopted in 1976 and has been ratified by over 100 countries.
The purpose of the LLMC is to ensure that shipowners have a reasonable level of protection from liability, while also providing adequate compensation to those who are injured or whose property is damaged in a maritime accident.
What is limitation of liability in maritime law?
In maritime law, limitation of liability refers to the right of a shipowner to limit their liability for damages caused by a maritime accident. The amount of liability that can be limited is determined by the size of the ship and the type of claim.
For example, the LLMC limits the liability of a shipowner for personal injury claims to 666,667 SDRs (Special Drawing Rights) per passenger and 1,500,000 SDRs for all other claims.
Why is there a limitation of liability in shipping?
There are a few reasons why there is a limitation of liability in shipping:
- Shipping is a risky business and shipowners need to be protected from being held liable for large sums of money in the event of an accident.
- Limitation of liability helps to keep shipping insurance premiums affordable.
- Limitation of liability helps to ensure that there are still ships available to transport goods and people.
What was the limitation of the liability Act on the Titanic?
The limitation of liability act on the Titanic was the Merchant Shipping Act 1894. This act limited the liability of the shipowners to £150 per passenger. This meant that the families of the victims of the Titanic disaster were only able to recover a fraction of their losses.