A. LIMITATION OF LIABILITY AND PROPERTY DAMAGE, LOSS OF LIFE AND PERSONAL INJURY

Introduction

The limitation regime in Pakistan has as from 3 October 2001 gone through a significant change by the promulgation of the Merchant Shipping Ordinance LII of 2001, the “Ordinance”. Accordingly the limits of liability of the shipowners which are substantially taken from Article 6 of the 1996 Protocol to the Limitation Convention of 1976 are contained in Chapter XLI comprising sections 534 to 548. Prior to 3 October 2001 the limits of liability of ship owners were based on the English Merchant Shipping Act of 1894 which was in force as part of all the laws existing on 14 August 1947 which were adopted by Pakistan on the partition of British India. By the said Ordinance the English Merchant Shipping Act of 1894 and all other Merchant Shipping Acts right up to 1947 were repealed in so far as they applied to Pakistan and thus the archaic limit of liability which remained frozen from 14 August 1947 to 2 October 2001 was done away with.