Under the LLMC, who pays claims within the limit and who pays beyond it?

flowchart TD
  A["Maritime claims from one occasion"] --> B["Limitation fund from gross tonnage (articles 6 and 7)"]
  B --> C{"Claims within the fund?"}
  C -->|Yes| D["Paid in full by the owner, in practice the P&I club"]
  C -->|No| E["Paid pro rata; the excess is not recovered, the claimants bear it"]
  A --> F{"Owner's own intent or recklessness (article 4)?"}
  F -->|Yes| G["Right to limit lost: unlimited liability"]

• LLMC (1976, 1996 Protocol): a shipowner, salvor and their P&I insurer cap maritime claims from one occasion at a gross-tonnage figure: article 6 general limits, article 7 passengers.
• Within the limit: the shipowner, in practice the P&I club, pays from the limitation fund; in full if the claims fit, pro rata if they exceed it.
• Beyond the limit: nobody pays under the LLMC; the excess falls on the claimants; no second tier, unlike the CLC and IOPC Fund regime for tanker oil.
• Exception (article 4): limitation is lost for the owner’s own personal act or omission, intended or reckless with knowledge; then liability is unlimited.
• India (MS Act 2025): s.164 sets off a cross-claim from the same occurrence; s.169 allows limitation without constituting a fund and sets when the right is lost.
• As Chief Engineer: bunker oil is limited under the LLMC via the Bunkers Convention, tanker cargo oil under CLC; run the plant so no casualty engages the conduct-barring test.