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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.
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.
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.
| 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 |
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.
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.
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.
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.
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