On 19 April 2012 the International Maritime Organisation agreed to increase the limits of liability available to vessels, owners and charterers under the 1996 Protocol.

Limits have been increased by approximately 30% and the amendments to the protocol enter into force on 8 June 2015.

Australia was one of the states promoting the increase so it is not surprising that on 2 March 2015 the Limitation of Liability for Maritime Claims Bill 2015 was introduced into the Australian parliament.

If passed, the Act will give effect to the higher limits as soon as they take effect.

Amendments to 1996 Protocol
Adoption: 19 April 2012
Entry into force: 8 June 2015

The new limits are expected to enter into force 36 months from the date of notification of the adoption, so in 2015, under the tacit acceptance procedure.

New limits:

Under the amendments to the 1996 Protocol, the limits are raised as follows:

The limit of liability for claims for loss of life or personal injury on ships not exceeding 2,000 gross tonnage is 3.02 million SDR (up from 2 million SDR).

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

  • For each ton from 2,001 to 30,000 tons, 1,208 SDR (up from 800 SDR)
  • For each ton from 30,001 to 70,000 tons, 906 SDR (up from 600 SDR)
  • For each ton in excess of 70,000, 604 SDR (up from 400 SDR).

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:

  • For each ton from 2,001 to 30,000 tons, 604 SDR (up from 400 SDR)
  • For each ton from 30,001 to 70,000 tons, 453 SDR (up from 300 SDR)
  • For each ton in excess of 70,000 tons, 302 SDR (up from 200 SDR).

The affect of these changes will most likely mean that Australia will be one of the first states to adopt the higher limits.

The higher limits will affect claims arising from events falling under the LLMC which occur in Australia.

The higher limits will also be relevant to claims over which an Australian Court has Admiralty jurisdiction by virtue of the presence of a relevant vessel at an Australian port.

This publication does not deal with every important topic or change in law and is not intended to be relied upon as a substitute for legal or other advice that may be relevant to the reader's specific circumstances. If you have found this publication of interest and would like to know more or wish to obtain legal advice relevant to your circumstances please contact one of the named individuals listed.