Maritime Claims And Limitation Funds

Limitation Funds in UAE

As with most of the world's trading countries, the United Arab Emirates (UAE) has embraced international conventions in its national laws which, in certain conditions, allow carriers such as shipowners to confine their liability for claims made against them. Archaeologically, the reason for letting shipowners limit their liability was for policy purposes, to be specific, to encourage the international trade by sea. The value of claims emerging from maritime occurrences, for instance, the loss of freight, could exceed the cost of the vessel and ruin a shipowner. International conventions obliging the limitation of liability, therefore, aims at looking for a balance between sufficiently paying a claimant for its loss and allowing owners to limit their potential liability to a sum that can safeguard the interest at a reasonable cost.