Athens Convention

The Athens Convention Relating to the Carriage of Passengers and their Luggage by Sea 1974, as substantially amended by its 2002 Protocol (widely known as PAL 2002), is the international treaty governing carrier liability for death, personal injury, and loss of or damage to luggage suffered by passengers on international sea voyages. It applies to every cruise-line, ferry, and passenger-carrying merchant vessel operating on international routes and directly binds every Master and DPA on those vessels.

Two versions currently in force

Athens 1974 (original)

Entered into force 28 April 1987. Original per-passenger liability limits: 46,666 SDR for death or personal injury; 833 SDR for cabin luggage; 3,333 SDR for vehicle luggage. Applies in states that ratified the 1974 text but did not accede to the 2002 Protocol. Still in force in a shrinking number of jurisdictions.

Athens 2002 Protocol (PAL 2002)

Entered into force 23 April 2014. Dramatically raised limits and introduced strict liability for shipping-incident death or personal injury up to 250,000 SDR (with negligence-based liability up to 400,000 SDR). Also mandates compulsory insurance certification for vessels licensed to carry more than 12 passengers. Applies in all EU member states via Regulation (EC) No. 392/2009, and is progressively adopted by other flag states.

PAL 2002 liability limits (per passenger)

Category	Limit (SDR)	Limit (~USD 2025)	Basis
Death or personal injury (shipping incident: shipwreck, collision, stranding, explosion, fire, defect)	Up to 250,000 (strict) + up to 400,000 (fault)	~$335k / $535k	Two-tier: strict liability to 250k SDR, negligence-based liability to 400k SDR
Death or personal injury (non-shipping incident)	Up to 400,000 (fault only)	~$535k	Fault-based only
Cabin luggage	2,250	~$3,000	Fault-based; deductible applies
Vehicles + luggage in vehicles	12,700	~$17,000	Fault-based
Other luggage (checked)	3,375	~$4,500	Fault-based

Shipping incident — the strict liability trigger

PAL 2002 Article 3(5)(a) defines a "shipping incident" as a shipwreck, capsizing, collision, stranding of the ship, explosion or fire in the ship, or defect in the ship. For death or personal injury caused by a shipping incident, the carrier is strictly liable up to 250,000 SDR (~$335k), regardless of fault. The carrier can only escape strict liability by proving the incident was caused by an act of war, hostilities, insurrection, or an act of a third party done with the intent to cause the incident.

Above the 250,000 SDR strict-liability tier, the carrier is liable up to 400,000 SDR for death or personal injury caused by a shipping incident IF the claimant proves the incident was caused through fault or neglect of the carrier.

Compulsory insurance certification

Every passenger-carrying vessel licensed to carry more than 12 passengers must maintain compulsory insurance (typically an IG P&I Club certificate) covering PAL 2002 liability at the full 250,000 SDR per passenger strict-liability tier. The vessel must carry a Blue Card (issued by the P&I Club) and a corresponding certificate issued by the flag state. Port State Control regularly inspects PAL certificates on cruise-line + ferry tonnage. Absence of a valid certificate is grounds for detention.

Time bar

Two years from the date of disembarkation (for personal-injury claims) or from the date of expected disembarkation (for death claims). Time can be extended by the law of the forum but not beyond three years from the date of disembarkation.

Jurisdiction

Article 17 of the Convention gives the claimant a choice of forum: (a) the state party where the carrier or performing carrier has its principal place of business, (b) the state party where the ticket-of-passage contract was concluded, (c) the state party of departure, or (d) the state party of destination. Any jurisdiction clause in the ticket that prospectively narrows this choice is void.

Application to specific vessel types

Cruise ships. Applies to all cruise ships operating on international voyages. Costa Concordia 2012 (32 killed) triggered PAL 2002 claims — Italy was PAL-party but claims practice was complicated by simultaneous Italian criminal proceedings against the Master.
Ferries. Applies to international ferries. Estonia 1994 (852 deaths) pre-dated PAL 2002 and was handled under a special IMO Resolution + national legislation. Sewol 2014 (304 deaths) was on a domestic South Korean voyage — outside international Athens application.
Passenger-carrying cargo vessels. Merchant vessels licensed to carry up to 12 passengers are covered but exempt from compulsory certification.
Yachts. Applies to commercial charter yachts carrying paying passengers on international voyages if flag state has ratified PAL 2002.

Notable case law

Costa Concordia (2012). 32 passengers + crew killed. Italy is PAL 2002 party. Class action + individual claims settled largely within PAL 2002 limits; total payout exceeded $1B including hull loss, salvage, and consequential claims.
Herald of Free Enterprise (1987). 193 killed. Pre-PAL 2002. Handled under UK Merchant Shipping Act 1979 + individual claims. Landmark case on corporate manslaughter but no PAL application.
MSC Aries seizure (2024). 25 crew held by Iran; PAL 2002 does not apply to crew (Convention covers passengers only). Crew rights fall under MLC 2006 A2.5.2 abandonment framework.