Convention on Limitation of Liability for Maritime Claims (LLMC), 1976

Convention on Limitation of Liability for Maritime Claims (LLMC), 1976



Adoption: 19 November 1976
Entry into force: 1 December 1986

 

Introduction

 

The Convention replaces the International Convention Relating to the Limitation of the Liability of Owners of Seagoing Ships, which was signed in Brussels in 1957, and came into force in 1968.

 

Under the 1976 Convention, the limit of liability for claims covered is raised considerably, in some cases up to 250-300 per cent.  Limits 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 harbour works).

 

In the Convention, the limitation amounts are expressed in terms of units of account.  Each unit of account is equivalent in value to the Special Drawing Right (SDR) as defined by the International Monetary Fund (IMF), although States which are not members of the IMF and whose law does not allow the use of SDR may continue to use the old gold franc (referred to as “monetary unit” in the Convention).

 

The limits under the 1976 Convention were set at 333,000 SDR (US$499,500) for personal claims for ships not exceeding 500 tons plus an additional amount based on tonnage:

 

Ø       For each ton from 501 to 3,000 tons, 500 SDR (US$750)

Ø       For each ton from 3,001 to 30,000 tons, 333 SDR (US$500)

Ø       For each ton from 30,001 to 70,000 tons, 250 SDR (US$375)

Ø       For each ton in excess of 70,000 tons, 167 SDR (US$251)

 

For other claims, the limit of liability was fixed under the 1976 Convention at 167,000 SDR (US$250,500) for ships not exceeding 500 tons. For larger ships the additional amounts were:

 

Ø       For each ton from 501 to 30,000 tons, 167 (US$251)

Ø       For each ton from 30,001 to 70,000 tons, 125 SDR (US$180)

Ø       For each ton in excess of 70,000 tons, 83 SDR (US$125)

 

The Convention provides for a virtually unbreakable system of limiting liability.  It declares that a person will not be able to limit liability only 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”.

 

Protocol of 1996

 

Adoption: 3 May 1996

Entry into force: 13 May 2004

 

Under the Protocol the amount of compensation payable in the event of an incident being substantially increased and also introduces a “tacit acceptance” procedure for updating these amounts.

Under the 1996 LLMC Protocol, which entered into force in 2004:


The limit of liability for claims for loss of life or personal injury for ships not exceeding 2,000 gross tonnage is 2 million SDR (US$3.17 million ).

 

For larger ships, the following additional amounts are used in calculating the limitation amount:

Ø       For each ton from 2,001 to 30,000 tons, 800 SDR (US$1,269)

Ø       For each ton from 30,001 to 70,000 tons, 600 SDR (US$952)

Ø       For each ton in excess of 70,000, 400 SDR (US$634).

 

Under the 1996 LLMC Protocol, the limit of liability for property claims for ships not exceeding 2,000 gross tonnage is 1 million SDR (US$1.586 million).
For larger ships, the following additional amounts are used in calculating the limitation amount:

 

Ø       For each ton from 2,001 to 30,000 tons, 400 SDR (US$634)

Ø       For each ton from 30,001 to 70,000 tons, 300 SDR (US$476)

Ø       For each ton in excess of 70,000, 200 SDR (US$317)

Ø        

(Using exchange rate of 1 SDR=1.586 US$, as at 29 November 2007
Ref: IMF website: http://www.imf.org/external/np/fin/data/rms_five.aspx )

 

Special Drawing Rights

 

The daily conversion rates for Special Drawing Rights (SDRs) can be found on the International Monetary Fund IMF website: http://www.imf.org/external/np/fin/data/rms_five.aspx )

 

Copied from:

http://www.imo.org/Conventions/contents.asp?doc_id=664&topic_id=256

 

 

 

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