Merchant Shipping Code of Ukraine (Edition of July 04, 2013)

SECTION X. Limitation of Shipowners' Liability.

Chapter 1. Limits of Shipowners' Liability.

Clause 348. Shipowner's Liability.

The Shipowner shall be liable on his obligations by his property to which an action for recovery of same may be brought in accordance with the Law of Ukraine.

Clause 349. Limitation of Liability.

The Shipowner's liability shall be limited in accordance with Clause 352 of this Code in regard to demands and claims arising, irrespective of their legal basis, from:

  1. death or injury to health of a person on board the vessel or loss or damage to property located on board the vessel;
  2. inflicting, in connection with sailing or operation of the vessel, damage or losses to persons or property not located on board the vessel.
  3. In case a damage mentioned in item 2 of this Clause is inflicted by the persons not found on board the vessel, the Shipowner, who is responsible for actions and faults of said person, may limit his own liability when said actions or faults were related to navigation or control of the vessel, or to loading, carriage or discharge of cargo, baggage or cabin baggage, or to embarkation or disembarkation of passengers.

    Clause 350. Deliberate Damage.

    The Shipowner's liability shall not be limited if it is proven that said damage was a result of his own action made deliberately to inflict said damage or made presumptuously with a comprehension of the possibility of infliction thereof.

    Clause 351. Exemption from Liability Limitation Rules.

    A limitation of liability on the basis of Clause 349 of this Code shall not apply in respect to claims:

    1. necessitated by salvage or contributions to general average;
    2. of crew members and other employees of the Owner who are linked with the vessel as well as their heirs or citizens who had the right to owner's support if, in accordance with the Law regulating the relationships between said persons and the Shipowner, the former's liability on these claims shall not be limited or if it exceeds the limits provided for by Clause 352 of this Code;
    3. connected with raising or removing sunk property;
    4. on reimbursement of damages from pollution by oil or other substances harmful to human health or living resources of the sea when the liability for said damage ensues in compliance with the rules of Chapter 4 of SECTION IX of this Code;
    5. on reimbursing the nuclear damage when the liability for causing said damage applies in accordance with the rules of Chapter 5 of SECTION IX of this Code.

    Clause 352. Extent of Liability.

    The amounts limiting the liability of the parties listed in Clauses 348 and 355 of this Code shall be:

    a) regarding the claims connected with death or damage to human health:

    • for vessels having a capacity of not more than 500 units -333.000 payment units;
    • for vessels with a capacity exceeding 500 units said sum is increased by the following sum, per each unit of vessel's capacity:
      • for vessels with a capacity 501 - 3000 units - 500 payment units;
      • for vessels with a capacity 3001 - 30.000 units - 333 payment units;
      • for vessels with a capacity 30001 - 70.000 units - 250 payment units;
      • for vessels with a capacity above 70.000 units - 167 payment units;

    b) regarding any other claims:

    • for vessels having a capacity of not more than 500 units -167.000 payment units;
    • for vessels with a capacity exceeding 500 units said sum is increased by the following sum per each unit of vessel's capacity:
      • 501 - 3000 units - 167 payment units;
      • 30001 - 70.000 units - 125 payment units;
      • above 70.000 units - 83 payment units.

    When the sum determined relative to the claim on death or damage to human health is insufficient for paying said claims in full, said sum is used for paying unpaid balance of said claims on a proportional basis as well as any other claims provided for by item b) of the first part of this Clause.

    For the purposes of limiting the liability:

    1. the capacity of the vessel propelled by a heat engine shall mean a net capacity plus engine-room volume, and the capacity of ail other vessels shall mean their net capacity;
    2. the limits of liability of any salvor who is performing his duties outside the vessel or exclusively on board the vessel that is rendered salvage services, shall be determined taking as a basis Jhe capacity of 1500 units.

    Clause 353. Application of Liability Limits.

    The limits of liability determined by Clause 352 of this Code shall apply to the totality of all claims arising out of any one incident, brought against one Shipowner and the parties named in Clause 355 of this Code.

    Clause 354. Counter Claim.

    In case the Shipowner whose liability is limited on the basis of Clause 350 of this Code has a right of a counterclaim arising out of the same incident, the limitation of liability shall apply with respect to the difference resulting from accounting mutual claims.

    Clause 355. Transfer of Right of Liability Limitation.

    In case any of the claims on which the Shipowner's liability may be limited, is brought directly against a person for whose actions or omissions the Shipowner is liable, said person shall have the right to make use of all provisions relative to limitation of liability of the Shipowner unless it is proven that the damage was deliberately caused by said person.

    Clause 356. Recognition of Liability.

    An action aimed at providing for a limited liability, in particular, an establishment of the appropriate fund or a reference to such a security shall not mean recognition of liability.

    Clause 357. Invalidity of Agreement on Liability Limitation.

    An agreement on the reduction of the Shipowner's liability as compared to that determined by the rules of this Clause, shall be invalid.