2015
Carrier Liability
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neglect, or default occurring on the high seas beyond a
marine league from the shore of any State, or the District of
Columbia, or the Territories or dependencies of the United
States," 34 the claim is limited to "a fair and just
compensation for the pecuniary loss sustained by the
persons for whose benefit the suit is brought." 35 By limiting
the claim to the pecuniary loss, the carrier will often only
have to pay funeral costs, travel expenses for relatives, and
similar expenses that result from the death of the victim.
In contrast, under the PLR, carriers are not only liable
up to 250,000 SDR, the PLR goes beyond the PAL 2002 by
requiring advance payments in cases of death or bodily
injury to cover immediate expenses. 36 Where the death of a
passenger results, this advance payment must amount to at
least 21,000 EUR. 37 While the PAL 2002 and the PLR require
carriers to maintain adequate war and non-war insurances to
cover passenger claims 38 (which is a challenge in itself given
the limit of 250,000 SDR per person involved in an incident
and the large number of passengers on board major cruise
ships), the necessary insurance cost can easily amount to one
billion SDR per ship, often approaching or even exceeding
the material value of luxurious cruise ships. 39 The PLR's
34 46 U.S.C. §§ 30302.
35 46 U.S.C. §§ 30303.
36 PLR at art. 6, para. 1.
37 Id.
38 PLR at Annex I, art. 4bis; PAL 2002 at art. 5.
39 Jim Walker, "Titanic Dreams" - Royal Caribbean Wins “Worst Cruise Line
in the World" Award, Jim Walker's Cruise Law News (Nov. 3, 2009),
http:/ / www.cruiselawnews.com / 2009/11/ articles / worst-cruise-line-in-
the-world/titanic-dreams-royal-caribbean-wins-worst-cruise-line-in-the-
world-award/ (Top of the line cruise vessels, like the Oasis of the Seas or
the Allure of the Seas, are estimated to cost 1.5 billion USD.).