New limits amount to an approximate 250 per cent increase on previous tonnage limits
From 3 May 2015 the tonnage limitation thresholds for maritime claims in Hong Kong substantially increased for ship owners. The Gard P&I Club has published an Insight article which reviews the impact of the change.
Hong Kong recently implemented the 1996 Protocol to the Convention on Limitation of Liability for Maritime Claims 1976 (the 1996 Protocol), which came into operation in Hong Kong on 3 May 2015. The new limits amount to an approximate 250 per cent increase on previous tonnage limits, though they could go even higher.
The LLMC allows shipowners, including the charterer, manager and operator of the vessel, as well as others to limit their liability for certain maritime claims arising out of any one occurrence. Different limits apply for claims for loss of life or personal injury, and claims for other types of loss or damage. The limit for claims for loss of life or personal injury is higher than the limit for other claims and also has priority over other claims.
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In brief, the main changes are:
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The tables below show a comparison between the previous, current and possible future limits of liability for loss of life/personal injury claims, passenger claims and property claims:
For now the tonnage limitation levels applied in Hong Kong will remain considerably lower than those applied by other parties to the 1996 Protocol. Therefore, the Club advises shipowners (as well as charterers, managers, operators and others), who are looking for a suitable jurisdiction in which to commence a tonnage limitation action, to continue to see Hong Kong as a major attraction.
Source & Graph Credits : The Gard P&I Club
