It is calculated with reference to the applicable limits on the basis of the tonnage of the ship as defined under the International Convention on Tonnage Measurement of Ships 1969. Only in relation to limitation of liability in respect of loss of life and personal injury to passengers a different system based on the number of passengers is used.
To determine the limits of liability one has to distinguish between loss of life and personal injury claims on the one hand and property damage claims on the other. In the case of property damage the limits of liability provide for a smaller fund than where there is also loss of life or personal injury, in which case the fund is three times as large. In general, the loss of life/personal injury claimants are entitled to two- thirds of such a fund and any excess of such claims rank equally with property damage in respect of the residual third of the fund.
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