Limitation of Liability for Maritime Claims Act (1976)

The Limitation of Liability for Maritime Claims Act (1976) limits the amount shipowners or operators can be held responsible for in case of accidents, damage, or pollution related to their vessels. This means they are protected from unlimited financial liability, capping their exposure to a specified amount based on the ship’s tonnage or the value of the cargo. The law encourages maritime trade by preventing owners from facing potentially ruinous liabilities, while still ensuring claimants can recover damages up to the set limits. It balances fair compensation with safeguarding shipowners from excessive financial risk.