Section 165
Limits of liability.
The Merchant Shipping Act, 2025
About this Act
An Act to consolidate and amend the law relating to merchant shipping to ensure compliance with India's obligation under the maritime treaties and international instruments to which India is a party and also to ensure the development of Indian shipping and efficient maintenance of Indian mercantile marine in a manner best suited to serve the national interest and for matters connected therewith or incidental thereto.
(1) The limits of liability for claims other than passenger claims under section 166 arising on any distinct occasion, shall be calculated in accordance with the provisions of the Limitation of Liability for Maritime Claims Convention:
Provided that in cases where the provisions of the Limitation of Liability for Maritime Claims Convention are not applicable, the limit of liability shall be such as may be prescribed.
(2) Where the amount calculated in respect of claims for loss of life or personal injury is insufficient to pay such claims in full, the amount calculated in respect of other claims shall be available for payment of the unpaid balance of claims in respect of claims for loss of life or personal injury and such unpaid balance shall rank rateably with claims in respect of other claims.
(3) Without prejudice to the right of claims for loss of life or personal injury under sub-section (2), the claims in respect of damage to harbour works, basins, waterways and aids to navigation shall have priority over other claims.
(4) The limits of liability for any salvor not operating from any vessel or for any salvor operating solely on the vessel to, or in respect of which he is rendering salvage services, shall be calculated according to gross tonnage as provided in the Convention on Limitation of Liability for Maritime Claims.
Provided that in cases where the provisions of the Limitation of Liability for Maritime Claims Convention are not applicable, the limit of liability shall be such as may be prescribed.
(2) Where the amount calculated in respect of claims for loss of life or personal injury is insufficient to pay such claims in full, the amount calculated in respect of other claims shall be available for payment of the unpaid balance of claims in respect of claims for loss of life or personal injury and such unpaid balance shall rank rateably with claims in respect of other claims.
(3) Without prejudice to the right of claims for loss of life or personal injury under sub-section (2), the claims in respect of damage to harbour works, basins, waterways and aids to navigation shall have priority over other claims.
(4) The limits of liability for any salvor not operating from any vessel or for any salvor operating solely on the vessel to, or in respect of which he is rendering salvage services, shall be calculated according to gross tonnage as provided in the Convention on Limitation of Liability for Maritime Claims.