SCHEDULE 2 TO THE ORDER SECTIONS 185 AND 186 OF THE MERCHANT SHIPPING ACT 1995
Article 2

Limitation of liability of shipowners, etc and salvors for maritime claims

185 Limitation of liability of maritime claims
(1) The provisions of the Convention on Limitation of Liability for Maritime Claims 1976 as set out in Part I of Schedule 7 (in this section and Part II of that Schedule referred to as “the Convention”) shall have the force of law in the Territory.
(2) The provisions of Part II of that Schedule shall have effect in connection with the Convention, and subsection (1) above shall have effect subject to the provisions of that Part.
(3) The provisions having the force of law under this section shall apply in relation to Her Majesty’s ships as they apply in relation to other ships.
(4) The provisions having the force of law under this section shall not apply to any liability in respect of loss of life or personal injury caused to, or loss of or damage to any property of, a person who is on board the ship in question or employed in connection with that ship or with the salvage operations in question if—
(a) he is so on board or employed under a contract of service governed by the law of the Territory; and
(b) the liability arises from an occurrence which took place after the commencement of this Order.
In this subsection, “ship” and “salvage operations” have the same meaning as in the Convention.

186 Exclusion of liability
(1) Subject to subsection (3) below, the owner of a British ship shall not be liable for any loss or damage in the following cases, namely—
(a) where any property on board the ship is lost or damaged by reason of fire on board the ship; or
(b) where any gold, silver, watches, jewels or precious stones on board the ship are lost or damaged by reason of theft, robbery or other dishonest conduct and their nature and value were not at the time of shipment declared by their owner or shipper to the owner or master of the ship in the bill of lading or otherwise in writing.
(2) Subject to subsection (3) below, where the loss or damage arises from anything done or omitted by an person in his capacity of master or member of the crew or (otherwise than in that capacity) in the course of his employment as a servant of the owner of the ship, subsection (1) above shall also exclude the liability of—
(a) the master, member of the crew or servant; and
(b) in a case where the master or member of the crew is the servant of a person whose liability would not be excluded by that subsection apart from this paragraph, the person whose servant he is.
(3) This section does not exclude the liability of any person for any loss or damage resulting from any such personal act or omission of his as is mentioned in Article 4 of the Convention set out in Part I of Schedule 7.
(4) This section shall apply in relation to Her Majesty’s ships as it applies in relation to other ships.
(5) In this section “owner”, in relation to a ship, includes any part owner and any charterer, manager or operator of the ship.