What is the scope of the Convention on Limitation of Liability for Maritime Claims?

The Convention on Limitation of Liability for Maritime Claims, sometimes called “The 1976 Limitation Convention,” was adopted by the International Maritime Organization (IMO) in 1976. The convention established a global framework that places limits on the amount of compensation that vessel owners may be held accountable for in the case of a marine casualty or incident. The Convention applies to all claims resulting from incidents occurring on the high seas or in territorial waters of any country, and claims arising from this type of maritime activity in foreign waters. The framework of the Convention outlines limits for various types of claims. For example, the maximum compensation for general maritime claims, such as negligence or failure to provide services, is limited to an amount equivalent to the net tonnage of the vessel multiplied by 666.67 Special Drawing Rights. Special Drawing Rights are a type of international monetary unit created by the International Monetary Fund. The Convention also established limits for loss of life claims. These claims are limited to an amount equivalent to 400,000 Special Drawing Rights. The loss of cargo claims are also limited to a maximum of 9,000 Special Drawing Rights per gross ton of the vessel, and the limitation amount for other claims, such as pollution damage, is calculated according to the conventions outlined in the Polluter Pays Principle. In South Carolina, the Convention on Limitation of Liability for Maritime Claims is applied by the federal court system. This ensures that the Convention is consistently applied throughout the state. The Convention is an important element of maritime law, as it ensures that vessel owners are held liable for manageable amounts, thereby reducing the risk of financial disaster should an incident occur.

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What is the scope of the Convention on Limitation of Liability for Maritime Claims?

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