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Limitation of civil liability for maritime claims

Chapter XV
LIMITATION OF CIVIL LIABILITY FOR MARITIME CLAIMS

Article 219.- Persons entitled to limit civil liability
1. The shipowner shall be entitled to limit civil liability for maritime claims specified in Article 220 of this Code.
2. The shipowner’s right to limit civil liability shall be also applied on similar principles to the salvor, the operator, the charterer and the manager of the vessel where the shipowner or any of such persons must be liable for his/her act, neglect or fault.
3. Where the assured is entitled to limit his/her liability for maritime claims, the insurer liable for these maritime claims shall be also entitled to limit his/her liability like the assured.
4. The exercise of the right to limit liability does not mean that the person entitled to such right has acknowledged all liabilities.
5. The person entitled to limit liability under the provisions of this Chapter shall lose his/her right to limit civil liability if the loss is proved to be the consequence of his/her fault.

Article 220.- Maritime claims subject to limitation of civil liability
1. Claims in respect of loss of life, personal injury or another health damage; loss of or damage to property, including damage to harbor facilities, areas for anchorage and navigable channels and aids to navigation, occurring on board or in direct connection with the operation of the seagoing vessel or with salvage operations, and consequential loss resulting therefrom.
2. Claims in respect of loss resulting from delay in the carriage of cargo, passengers or their luggage by sea.
3. Claims in respect of other loss resulting from infringement of rights other than contractual rights, occurring in direct connection with the operation of the seagoing vessel or salvage operations.
4. Claims in respect of the recovery, removal, destruction or the rendering harmless of a seagoing vessel which is sunk, wrecked, destroyed or abandoned, including property that is or has been on board such vessel.
5. Claims in respect of the removal, destruction or the rendering harmless of the cargo on board the seagoing vessel.
6. Claims of a person other than the person who has civil liability in respect of measures taken by himself/herself in order to avert or minimize loss for which such person may limit his/her liability, and further loss caused by the application of such measures.

Article 221.- Maritime claims not subject to limitation of civil liability
1. Claims for salvage remuneration or contribution in general average
2. Claims for oil pollution damage
3. Claims for nuclear damage;
4. Claims by servants of the shipowner or salvor whose duties are related to the seagoing vessel or the salvage operations, including claims of their heirs, dependants or other persons entitled to make such claims, if under the law governing the labor contract between the shipowner or salvor and such servants the shipowner or salvor is not entitled to limit his/her civil liability for such claims, or if he/she is only permitted to limit his/her civil liability to an amount greater than that specified in Article 222 of this Code.

Article 222.- Limits of civil liability
1. The limits of civil liability for maritime claims in respect of loss of life, personal injury or health damage to passengers carried by sea and loss of or damage to their luggage shall comply with the provisions of Article 132 of this Code.
2. The limits of civil liability for maritime claims in respect of loss of life, personal injury or health damage to non-passengers are specified as follows:
a. 167,000 units of account for a seagoing vessel with a tonnage not exceeding 300 GT;
b. 333,000 units of account for a seagoing vessel with a tonnage of between 300 GT and 500 GT;
c. For a seagoing vessel with a tonnage over 500 GT, the following amount in addition to that mentioned at Point b of this Clause: for each GT from 501 to 3,000GT, 500 units of account; for each GT from 3,001 to 30,000 GT, 333 units of account; for each GT from 30,001 to 70,000 GT, 250 units of account; and for each GT in excess of 70,000GT, 167 units of account.
3. The limits of civil liability for other maritime claims are specified as follows:
a. 83,000 units of account for a seagoing vessel with a tonnage not exceeding 300GT;
b. 167,000 units of account for a seagoing vessel with a tonnage of between 300GT and 500GT;
c. For a ship with a tonnage in excess of 500 GT, the following amount in addition to that mentioned at Point b of this Clause: for each GT from 501 to 30,000 GT, 167 units of account; for each GT from 30,001 to 70,000 GT, 125 units of account; and for each GT in excess of 70,000GT, 83 units of account.
4. Where the total amount calculated under Clause 2 of this Article is insufficient to pay such maritime claims, the total amount calculated under Clause 3 of this Article shall b used to pay the unpaid balance of maritime claims under Clause 2 of this Article and such unpaid balance shall rank rateable with other maritime claims under Clause 2 of this Article.
5. Maritime claims specified in Clause 3 of this Article and related to damage to harbor facilities, areas for anchorage, navigable channels and aids to navigation shall be the first to be settled.
6. The limits of liability of the salvor not operating from any seagoing vessel or operating solely on the vessel to, or in respect of which he/she is rendering salvage services, shall be calculated according to a tonnage of 1,500 GT.
7. The limits of liability provided for in this Article shall apply to the total value of all claims which arise from a distinct case.
8. The limits of civil provided for in this Article shall be converted into Vietnam dong at the exchange rate applied at the time of payment.
9. Total tonnage is the seagoing vessel’s gross tonnage (GT) calculated in accordance with the 1969 International Convention on Tonnage Measurement of Ships

Article 223.- The compensation assurance fund
1. Those who are entitled to limit their civil liability under the provisions of this Code may constitute a compensation assurance fund for settlement of maritime claims for which they are entitled to limit their liability. The compensation assurance fund shall be constituted in the sum of such of the amounts specified in Article 222 of this Code together with interest thereon from the date of the occurrence giving rise to the maritime claims until the date of the constitution of the fund.
2. The compensation assurance fund shall be distributed among the claimants in proportion to their established claims against the total value of the fund.
3. A compensation assurance fund may be constituted by the shipowner’s depositing the sum or producing another financial guarantee acceptable by the court which has accepted the case.
4. After the compensation assurance fund has been constituted, nobody may infringe upon the interests or property of the liable person. The court shall have the right to release the seized property of the liable person or terminate similar guarantees already provided by the liable person.
5. If, before the compensation assurance fund is distributed, the person liable, or any of those who are entitled to limit their civil liability under the provisions of this Code, has settled a maritime claim falling within scope of compensation by the fund, such person shall, up to the amount he/she has paid, enjoy by subrogation all interests from the fund with respect to the settled maritime claim.6. The constitution of a compensation assurance fund does not mean that the shipowner has acknowledged all liabilities.