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The Merchant Shipping Act, 2025

Section 165. Limits of liability.

(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.

Source: IndiaCode Portal, Legislative Department, Ministry of Law and Justice, Government of India. Open on India Code Check against the official text before relying on it.

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