These rules supersede the Merchant Shipping (Limitation of Liability for Maritime Claims) Rules, 2015, except in respect of things done or omitted before such supersession. They apply to every Indian vessel and to every non-Indian vessel entering or departing an Indian port or operating in coastal waters, but do not apply to warships, naval auxiliary vessels, or other vessels owned/operated by a State Government for non-commercial purposes. The rules do not affect other laws in force regarding nuclear damage, oil pollution damage under specific conventions, or liability governed by special enactments, including matters relating to raising, removal, destruction, or rendering harmless of sunk, wrecked, stranded, or abandoned vessels or cargo.

The rules define “Act,” “Convention” (the Convention on Limitation of Liability for Maritime Claims, 1976, as amended), “liability,” “maritime claim,” “ship owner,” and “tonnage.” For claims other than passenger claims, the limitation of liability is specified as follows: for claims of loss of life or personal injury — 3,020,000 Units of Account for vessels not exceeding 2000 tons, with additional units per ton at specified rates for higher tonnage bands (1208, 906, and 604 Units of Account respectively for tonnage bands 2,001–30,000, 30,001–70,000, and above 70,000 tons); for other claims — 1,510,000 Units of Account for vessels not exceeding 2000 tons, with additional units (604, 453, and 302 Units of Account respectively) for the corresponding tonnage bands. Where the amount for loss of life/personal injury claims is insufficient, the balance is paid proportionately from the amount for other claims.

For salvors not operating from a vessel, or operating solely on the vessel to which salvage services are rendered, liability is calculated on a tonnage of 1,500 tons. For passenger claims, the limit of liability is 1,75,000 Units of Account multiplied by the number of passengers the vessel is authorised to carry per its passenger certificate. Units of Account are Special Drawing Rights as defined by the International Monetary Fund, converted to Indian Rupees at the official rate determined by the Reserve Bank of India on the date of constitution of the fund under Section 168 of the Act.