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Core Purpose

The Central Government makes the Merchant Shipping (Limitation of Liability for Maritime Claims) Rules, 2026, superseding the 2015 rules, in exercise of powers conferred by sections 174, 165(1), and 166 of the Merchant Shipping Act, 2025.

Detailed Summary

The Ministry of Ports, Shipping and Waterways, through G.S.R. 585(E) dated July 6, 2026, published on July 7, 2026, has enacted the Merchant Shipping (Limitation of Liability for Maritime Claims) Rules, 2026. These rules, made under sections 174, 165(1), and 166 of the Merchant Shipping Act, 2025 (24 of 2025), supersede the Merchant Shipping (Limitation of Liability for Maritime Claims) Rules, 2015, while preserving actions done or omitted before supersession. The rules apply to all Indian vessels and foreign vessels entering or departing Indian ports or operating in coastal waters, excluding warships or government ships used for non-commercial purposes, and do not affect existing laws on nuclear damage or oil pollution. They define 'Act' as the Merchant Shipping Act, 2025, and 'Convention' as the Convention on Limitation of Liability for Maritime Claims, 1976, as amended. The rules establish limits of liability for maritime claims, other than passenger claims, based on ship tonnage: for loss of life or personal injury, 3,020,000 Units of Account for ships up to 2000 tons, with additional amounts per ton for larger vessels (e.g., 1208 Units for 2001-30000 tons); for other claims, 1,510,000 Units of Account for ships up to 2000 tons, with additional amounts per ton for larger vessels (e.g., 604 Units for 2001-30000 tons). If loss of life/personal injury claims exceed their allocated amount, any unpaid balance can draw from the 'other claims' fund. Salvors not operating from a ship have a liability limit calculated based on 1,500 tons. For passenger claims, the limit is 1,75,000 Units of Account multiplied by the authorized passenger capacity. 'Units of Account' are defined as Special Drawing Rights (SDRs) of the International Monetary Fund, convertible to Indian rupees by the Reserve Bank of India per section 168 of the Act.

Full Text

REGD. No. D. L.-33004/99 The Gazette of India CG-DL-E-09072026-274303 EXTRAORDINARY PART II-Section 3-Sub-section (i) PUBLISHED BY AUTHORITY No. 527] NEW DELHI, TUESDAY, JULY 7, 2026 [F. No. SY-19014/192/2025-MG-Part(1)] MINISTRY OF PORTS, SHIPPING AND WATERWAYS NOTIFICATION New Delhi, the 6th July, 2026 G.S.R. 585(E). — In exercise of the powers conferred by section 174 read with sub-section (1) of section 165 and section 166 of the Merchant Shipping Act, 2025 (24 of 2025), and in supersession of the Merchant Shipping (Limitation of Liability for Maritime Claims) Rules, 2015, except in respect of things done or omitted to be done before such supersession, the Central Government hereby makes the following rules, namely: 1. Short title and commencement. — (1) These rules may be called the Merchant Shipping (Limitation of Liability for Maritime Claims) Rules, 2026. (2) These rules shall come into force on the date of their publication in the Official Gazette. 2. Application. — (1) Subject to the provisions of section 173 of the Act, these rules shall apply to, (a) every Indian vessel; and (b) every vessel, other than an Indian vessel, entering or departing a port in India or operating in the coastal waters, but shall not apply to warships, naval auxiliary or other ships owned or operated by the government of any State and used for the time being, only for non-commercial purposes. (2) Nothing in these rules shall affect the operation of any other law in force in India in respect of nuclear damage, oil pollution damage covered under other specific conventions, or liability governed by special enactments, including matters relating to the raising, removal, destruction or rendering harmless of a ship that is sunk, wrecked, stranded or abandoned, or of anything, including cargo, that is or has been on board such ship. 3. Definitions. — (1) In these rules, unless the context otherwise requires, - (a) "Act" means the Merchant Shipping Act, 2025 (24 of 2025); (b) "Convention” means the Convention on Limitation of Liability for Maritime Claims, 1976, as amended; (c) "liability" shall have the meaning assigned to it in clause (a) of Explanation 2 to section 162 of the Act and shall be deemed to include claims specified in sub-section (1) of section 162; (d) "maritime claim", in relation to limitation of liability, means a claim as specified in sub-section (1) of section 162 of the Act; (e) "ship owner" means the owner, charterer, manager, and operator of a sea-going ship; and (f) "tonnage" means the gross tonnage, calculated in accordance with the applicable rules made under the Act. (2) The words and expressions used in these rules and not defined, but defined in the Act shall have the meanings respectively assigned to them in the Act. 4. Limitation of liability for maritime claims. - (1) Any person referred to in section 162 of the Act, who seeks to limit their liability for maritime claims other than passenger claims, arising on any distinct occasion, shall be calculated in the following manner, namely:— (a) In respect of claims for loss of life or personal injury, — (i) 3,020,000 Units of Account for a ship with a tonnage not exceeding 2000 tons; (ii) For a ship with a tonnage in excess of 2000 tons, the following amount in addition to that mentioned in sub-clause (i) of clause (a), — (A) For each ton from 2,001 to 30,000 tons, 1208 Units of Account; (B) For each ton from 30,001 to 70,000 tons, 906 Units of Account; and (C) For each ton in excess of 70,000 tons, 604 Units of Account. (b) In respect of any other claims, — (i) 1,510,000 Units of Account for a ship with a tonnage not exceeding 2000 tons; (ii) For a ship with a tonnage in excess of 2,000 tons, the following amount in addition to that mentioned in sub-clause (i) of clause (b): (A) For each ton from 2,001 to 30,000 tons, 604 Units of Account; (B) For each ton from 30,001 to 70,000 tons, 453 Units of Account; and (C) For each ton in excess of 70,000 tons, 302 Units of Account. (2) Where the amount calculated in accordance with clause (a) of sub-rule (1) is insufficient to pay the claims mentioned therein in full, the amount calculated in accordance with clause (b) of sub-rule (1) shall be available for payment of the unpaid balance of claims under clause (a) of sub-rule (1), and such unpaid balance shall rank rateably with the claims mentioned under clause (b) of sub-rule (1). (3) The limit of liability for any salvor not operating from any ship or for any salvor operating solely on the ship to, or in respect of which he is rendering salvage services, shall be calculated according to a tonnage of 1,500 tons. (4) In respect of claims arising on any distinct occasion for loss of life or personal injury to passengers of a ship, the limit of liability of the ship owner shall be an amount of 1,75,000 Units of Account multiplied by the number of passengers which the ship is authorised to carry according to the passenger certificate issued for the ship. 5. Units of accounts. — (1) The units of account referred to in these rules are the special drawing rights, as defined by the International Monetary Fund. (2) The units of account shall be converted into Indian rupees according to the official value in rupees of the special drawing rights as determined by the Reserve Bank of India on the date of constitution of the fund under section 168 of the Act. [F. No. SY-19014/192/2025-MG-Part(1)] MUKESH MANGAL, Addl. Secy.

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