The Limitation of Liability for Maritime Claims Convention (LLMC)

The Limitation of Liability for Maritime Claims Convention (LLMC) sets maximum limits on the amount of compensation a shipowner or operator must pay if they are held responsible for maritime accidents. Its purpose is to protect shipowners from unlimited liability, ensuring they are only liable for a certain amount, which encourages shipping activities. However, these limits can vary based on the size of the vessel and type of claim. The convention helps balance fair compensation for victims while maintaining maritime industry stability by preventing potentially devastating financial liabilities.