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Modern Maritime Law and Risk Management

CHAPTER 18 PASSENGERS’ CLAIMS AND LIMITATION OF LIABILITY 1 INTRODUCTION Carriers who perform carriage services to passengers on board ships are faced with different risks than those carriers who transport cargoes. Passenger risks, being a third party liability, are also covered by P&I insurance, but the function of insurance, as is the case with all maritime risks that are covered by insurance, is to indemnify a carrier for losses that have been incurred. Obtaining insurance cover is not a way of managing risks in a sense of preventing their occurrence by compliance with international conventions, regulations and EU Directives concerning the safe operation of passenger vessels (see Chapters 8 and 20). Managing risks involved with passenger vessels has become more complex, particularly with regard to the modern and large cruise ships which carry a large number of people.

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