European Commission targets civil liability of shipowners
The European Commission's Third Maritime Safety Package of proposed maritime legislation for the European Union has several provisions that would curtail the civil liability available to shipowners under current conventions of the International Maritime Organization (IMO).
The most worrisome proposals for vessel owners and their protection and indemnity (P&I) clubs are found in the Commission's 'Directive on Civil Liability and the Financial Security of Shipowners,' which shows how the EU would approach the IMO Convention on Limitation of Liability for Maritime Claims (LLMC 1996).
Once all EU member states have ratified LLMC 1996, the Commission will request 'a mandate for negotiating, within the IMO, the revision of LLMC 1996 in order to review the level at which shipowners lose their right to limit their liability,' according to the proposed legislation.
Ships flying the flag of a country that is not a party to LLMC 1996 will come under a more severe liability regime 'with gross negligence as [a] conduct-barring limitation,' the Commission's proposal said.
Furthermore, the Commission wants to establish 'a system of obligatory financial securities for shipowners'[of] a sum equivalent to double the ceilings laid down [in LLMC 1996].' That would apply to all vessels entering European Union waters, regardless of flag.
The Commission has also proposed that shipowners must have financial security for any abandonment of vessel crews.
The legislation would also allow 'direct action,' meaning that claims for third-party damage could be addressed directly to a P&I club or other insurance source of financial security for civil liability.
European Commission targets civil liability of shipowners
