Clause 6

Where, as a result of any occurrence, the owner of a ship incurs a liability under section 3 by reason of a discharge or an escape or by reason of any relevant threat of contamination, then, subject to subsection (4), he may limit that liability in accordance with and in the manner provided in section 136 of the Merchant Shipping Act (Cap. 179), 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.

In subsection (1), “the relevant amount” means the limit of liability calculated in accordance with section 136 of the Merchant Shipping Act.

The Authority may, with the approval of the Minister, by order published in the Gazette, make such amendments to subsection (2) as may be appropriate for the purpose of giving effect to the entry into force of any amendment of the limits of liability laid down in Article 6 of the Bunker Convention.

Subsection (1) shall 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 anything 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.

For the purposes of section 136 of the Merchant Shipping Act (Cap. 179), any liability incurred under section 3 shall be deemed to be a liability to damages in respect of such damage to property referred to in paragraph 1(a) of Article 2 of the Convention on Limitation of Liability for Maritime Claims, 1976.