Article 96 of the Saudi Commercial Maritime Law
المادة 96 من النظام البحري التجاري · الفصل الأول: المالك والمجهز
Limitation of liability applies to the balance after set-off between the owner's debt and the creditor's debt from the same incident, and execution against the owner's property is barred if the compensation sum is placed at the creditor's disposal or an acceptable guarantee is provided.
Official text (Arabic)
This article has not been amended since the law was issued.
1- إذا نشأ لمالك السفينة المدين دين قبل أحد الدائنين في حادث واحد، فلا يسري تحديد المسؤولية إلا بالنسبة إلى المبلغ الباقي بعد إجراء المقاصة بين الدينين.
2- لا يجوز للدائن اتخاذ أي إجراء على أموال مالك السفينة إذا وُضع المبلغ المخصص للتعويض تحت تصرف الدائن بالفعل، أو إذا قدم المالك ضماناً تقبله المحكمة.
This is the official Arabic wording, the only legally binding version. We do not translate the law itself; the explanation below is ours. Official source: Bureau of Experts at the Council of Ministers
Article 96 explained in plain English
This article deals with two matters in applying limitation of the ship owner's liability:
First: set-off. If the debtor ship owner has a claim against one of the creditors arising from the same incident, limitation of liability does not apply to the whole claim but to the balance remaining after set-off between the two debts. What the owner is owed by the creditor is deducted first, and the limit is then applied to the net amount.
Second: protection of the owner's property. The creditor may not take any step against the property of the ship's owner in either of two cases:
- if the sum set aside for compensation has actually been placed at the creditor's disposal.
- if the owner has provided a guarantee acceptable to the court.
An owner who provides the compensation sum or an acceptable guarantee thus protects his ships and other property from attachment and execution.
This is read with Article 95, which bars limitation in cases including intentional damage, oil pollution and crew rights, and Article 97, which regulates the owner's subrogation to the creditor if he has paid a debt before distribution. To apply set-off and assess the guarantee in an actual dispute, consult a lawyer who specializes in maritime and commercial law.
Practical example
Two ships collided, and the owner of the second ship claimed SAR 5 million in compensation from the owner of the first, while the owner of the first has a claim against him of SAR 1 million from the same incident. The million is deducted first, and limitation of liability then applies to the remaining SAR 4 million.
Translated from our Arabic explanation with machine assistance. For guidance only; it does not replace advice from a lawyer on your situation.
How we write and review contentCivil Litigation & Compensation lawyers: ask a specialist about your case
Describe your situation briefly and we'll suggest a lawyer who specialises in this law
Civil Litigation & Compensation lawyers
Lawyers who handle this kind of case
Dr. Ali Al-Rubaie Law Office and Ittihad Al-Asr Legal Company
Abdullah Al-Saleh Law Office for Law and Legal Consultancy
Frequently asked questions about Article 96 of the Saudi Commercial Maritime Law
How does set-off affect limitation of a ship owner's liability?
If the owner has a claim against the creditor arising from the same incident, limitation applies to the balance remaining after set-off between the two debts.
When may the creditor not attach the property of the ship's owner?
If the sum set aside for compensation has actually been placed at his disposal, or the owner has provided a guarantee acceptable to the court.
More articles on Liability of the Ship Owner and Operator
- Article 92
The ship's owner or operator is civilly liable for the acts of the master, the seamen, the pilot and all persons in the ship's service committed in the course of or because of their duties, and for the master's contracts within his powers.
يسأل مالك السفينة أو مجهزها مدنيًّا عن أفعال الربان والبحارة والمرشد وأي شخص آخر في خدمة السفينة إذا وقعت منهم أثناء تأدية وظائفهم أو بسببها، ويُسأل أيضاً عن ال
- Article 93
The liability of the ship's owner is limited in accordance with the international conventions on limitation of liability for maritime claims to which the Kingdom has acceded.
تحدد مسؤولية مالك السفينة طبقاً للاتفاقيات الدولية المتعلقة بتحديد المسؤولية عن المطالبات البحرية التي انضمت إليها المملكة.
- Article 94
The article sets out the six kinds of claims in which a ship's owner may limit his liability, such as death, injury, loss of property, damage to port installations, delay and wreck removal.
لمالك السفينة أن يحدد مسؤوليته إذا كانت الدعوى ناشئة عن أحد الأسباب الآتية: 1- الوفاة أو الإصابة التي تلحق الأشخاص الموجودين على متن السفينة بقصد نقلهم، والهلاك
- Article 95
A ship's owner may not limit his liability for intentional damage or reckless neglect with awareness of damage, salvage and general average claims, the rights of crew members and their heirs, and pollution damage.
لا يجوز لمالك السفينة تحديد مسؤوليته وفقاً لحكم المادة (الرابعة والتسعين) إذا كانت الدعوى ناشئة عن أحد الأسباب الآتية: 1- الضرر الناشئ عن فعلٍ أو امتناعٍ عن فعل
- Article 97
If the ship's owner pays one of the debts before the compensation sums are distributed, he is subrogated to the creditor to the extent of what he paid, and the court may, at his request, hold back part of the sums for a debt he proves he may become liable for.
1- إذا وفى مالك السفينة أحد الديون التي يُجرى التوزيع بينها قبل توزيع المبالغ المخصصة للتعويضات، جاز له أن يحلّ محل صاحب الدين في التوزيع بمقدار المبلغ الذي وفا
- Article 98
No liability action against the ship's owner is heard after two years from the date of the act giving rise to the liability, without prejudice to rights arising from death or bodily injury.
مع عدم الإخلال بالحقوق الناشئة عن الوفاة أو الإصابة البدنية، لا تسمع الدعوى بالمسؤولية على مالك السفينة بعد مضي سنتين من تاريخ وقوع الفعل المنشئ للمسؤولية.
The texts are reproduced from the official website of the Bureau of Experts at the Council of Ministers for reference; where they differ, the officially published Arabic text prevails. This content is not legal advice.