The Convention on Limitation of Liability for Maritime Claims

The Convention on Limitation of Liability for Maritime Claims is an international agreement that allows shipowners to limit their financial liability in cases of accidents or damage, such as oil spills or collisions. Essentially, if a ship causes harm, the owner’s losses are capped based on the ship’s tonnage, meaning they won’t have to pay more than a certain amount. This helps protect shipowners from bankruptcy while ensuring some compensation for those affected. The convention aims to balance the interests of maritime businesses and victims of maritime incidents, promoting safety and investment in shipping.