Various international conventions have attempted to codify the rules to achieve some kind of uniformity between different countries, culminating in the 1976 convention on limitation of liability for maritime claims.

The substantial and in some cases dramatic increase in the limits of liability for all categories and sizes of ships under the 1996 Protocol now reflect the view that previous rules had unfairly protected ship owners and their insurers when compared to other industries.

Why, for example, should someone injured by a speed boat be subject to a lower maximum award of damages than someone injured by a speeding car?

The increased limits for categories and sizes of ships whenever they are involved in a maritime incidents is particularly welcome for smaller vessels under, for example, 300 tonnes (although the convention allows individual states to make their own regulations in respect of these vessels). In the UK, for example, the limits for such vessels have been set at a special drawing rate (SDR), a monetary unit set by the International Monetary Fund, of 500,000 for damage to property and SDR 1 million for personal injury and death claims - an increase of some 300% on previous limits.

Importantly, the protocol also dramatically increases the limits in respect of passenger claims - from SDR 46,666 to SDR 175,000, about £160,000, per passenger. Further, the previous upper cap per vessel of SDR 25 million has been abolished.

Accordingly, any claim on a passenger cruise liner will be calculated by multiplying SDR 175,000 by the number of passengers that the vessel is authorised to carry. For example the new Queen Mary II (authorised to carry some 2,620 passengers) would mean the limit for passenger claims will now be some £400 million, which, if there is a bad accident, may well be required.

Although 10 countries have ratified the new limits, there are still a substantial number of trading countries which have not yet incorporated these changes and, unfortunately, a large of number of countries which still apply the much older 1957 Limitation Convention. Although, a number of the countries that are currently a party to the 1957 or 1976 Convention will sign up to the 1996 protocol in time, the immediate aftermath of any current accident, such as a collision or salvage, will find claimants attempting to establish a jurisdiction for their claims in the new protocol regimes in order to take advantage of the increased limits. By way of corollary, defendant ship owners will, almost certainly, be seeking to establish jurisdiction in existing 1957 and/or 1976 Convention states in order to minimise their exposure.

Although these new rules should benefit those who use sea transport for pleasure or business, nevertheless there will, in the event of a casualty, still be a great deal of 'jostling for position' to achieve the best result. Accordingly, it has never been more important to know your limitations whatever the type of vessel in which you may go to sea.

MJInformation No: 19600