Vidhi Codex

section 162

Limitation of liability for damages in respect of certain claims.

The Merchant Shipping Act, 2025
Infrastructure2025327 sections
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Chapter II LIMITATION OF LIABILITY FOR MARITIME CLAIMS

Statutory text
  1. (1) The ship owner or salvor or any person for whose act, neglect or default, the ship owner or salvor, or any such person is responsible, and the insurer of liability for such claims, may limit his liability for claims in respect of--
    • (a) loss of life or personal injury or loss of or damage to property including damage to harbour works, basins and waterways and aids to navigation, occurring onboard or in direct connection with the operation of the vessels or with salvage operations and consequential loss resulting therefrom;
    • (b) loss resulting from delay in the carriage by sea of cargo, passengers or their luggage;
    • (c) other loss resulting from infringement of rights other than contractual rights, occurring in direct connection with the operation of the vessel or salvage operations;
    • (d) the raising, removal, destruction or the rendering harmless of a vessel which is sunk, wrecked, stranded or abandoned, including anything that is or has been onboard such vessel;
    • (e) the removal, destruction or the rendering harmless of the cargo of the vessel;
    • (f) a person other than the person liable in respect of measures taken in order to avert or minimise loss for which the person liable may limit his liability in accordance with the Limitation of Liability for Maritime Claims Convention and further loss caused by such measures.
  2. (2) The claims set out under sub-section (1) shall be subject to limitation of liability, even if brought by way of recourse or for indemnity under a contract or otherwise: Provided that claims set out under clauses (d),
    • (e) and (f) of sub-section (1) shall not be subject to limitation of liability to the extent they relate to remuneration under a contract with the person liable.
  3. (3) Nothing in this section shall apply to,--
    • (a) claims for salvage, including any claim for special compensation under Article 14 of the Salvage Convention, or contribution in general average;
    • (b) claims for oil pollution damage under Chapter III of this Part relating to civil liability for oil pollution damage;
    • (c) claims subject to any convention or any law for the time being in force in India governing or prohibiting limitation of liability for nuclear damage;
    • (d) claims against the ship owner of a nuclear vessel for nuclear damage;
    • (e) claims by servant of the ship owner or salvor whose duties are connected with the vessel or the salvage operations, including claims of their heirs, dependants or other persons entitled to make such claims, if under the law governing the contract of service between the ship owner or salvor and such servants, the ship owner or salvor is not entitled to limit his liability in respect of such claims, or if he is by such law only permitted to limit his liability to an amount greater than that provided in the Limitation of Liability for Maritime Claims Convention or the rules made under sections 165 and 166. Explanation 1.--For the purposes of this section, the act of invoking limitation of liability shall not be an admission of liability. Explanation 2.--For the purposes of this Chapter, --
    • (a) the liability of a ship owner shall include the liability in an action brought against the vessel herself;
    • (b) "ship owner" means the owner, charterer, manager or operator of a sea-going vessel.

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