Section 6
Limitation of liability under section 3
of Merchant Shipping (CIVIL Liability and Compensation for Oil Pollution) Act
(1)
Where, as a result of any occurrence, the owner of a ship incurs a liability under section 3 by reason of a discharge or escape or by reason of any relevant threat of contamination, then, subject to subsection (4) —
(a)
section 141 of the Merchant Shipping Order, 2002
(S 27/2002) does not apply in relation to that liability; but
(b)
he may limit that liability in accordance with this Act, and if he does so his liability (being the aggregate of his liabilities under section 3 resulting from the occurrence) shall not exceed the relevant amount.
(2)
In subsection (1)(b), “relevant amount” means —
(a)
in relation to a ship not exceeding 5,000 tons,
4.51 million special drawing rights; and
(b)
in relation to a ship exceeding 5,000 tons, 4.51 million special drawing rights together with an additional 631
special drawing rights for each ton of its tonnage in excess of 5,000 tons up to a maximum amount of 89.77 million special drawing rights.
(3)
The Minister may, with the approval of His Majesty the Sultan and Yang Di-Pertuan, by order published in the Gazette, make such amendments to subsection (2)(a) and (b) as appear to him to be appropriate for the purpose of giving effect to the entry into force of any amendment of the limits of liability laid down in paragraph 1 of Article V of the
Liability Convention.
(4)
Subsection (1) does not apply in a case where it is proved that the discharge or escape, or the relevant threat of contamination, as the case may be, resulted from any thing done or omitted to be done by the owner either with intent to cause any such damage or cost as is mentioned in section 3 or recklessly and in the knowledge that any such damage or cost would probably result.
(5)
For the purposes of this section, the tonnage of a ship shall be its gross tonnage calculated in accordance with the regulations in Annex 1 of the International Convention on Tonnage Measurement of Ships 1969.
Merchant Shipping
(Civil Liability and Compensation for Oil Pollution)