Marine casualties, investigations and liabilities in Malta: AIJA TLLC cross-border questionnaire

1. What’s the first thing you do when the shipowner/Club calls in case of a marine casualty?

A few of the first things that are to be considered are (a) the facts of the case, (b) whether the incident is indeed a shipping casualty and (c) if the vessel is in Maltese territorial waters or Maltese flagged.

In terms of the Merchant Shipping Act, Chapter 234 of the Laws of Malta (the “MSA”), a shipping casualty shall be deemed to occur where:

• any ship is or is supposed to have been lost, abandoned, stranded or materially damaged;
• any ship or any ship’s boat or any cargo from that ship has caused or is supposed to have caused, any loss, abandonment, stranding or material damage, including loss of life of any person or injury sustained by any person;
• loss of life of any person has occurred on board any ship or any ship’s boat;
• any person has sustained injury on board any ship or any ship’s boat.

Moreover, shipping casualties involving all Maltese registered ships (wherever they may be) and/ or foreign flagged ships navigating in Maltese waters should be reported as soon as practicable and by the quickest available means to the Registry of Ships in Malta irrespective of the severity or perceived severity.

Separately, such shipping casualties should also be reported to the Marine Safety Investigation Unit in Malta (the “MSIU”). The MSIU is an independent government investigation unit which is tasked with contributing to maritime safety by carrying out safety investigations into accidents and was set up further to a European Union Directive establishing the principles governing the investigation of accidents in the maritime transport sector.

2.What are the immediate concerns and how do you protect your clients’ interests?

Further to the above, there are a number of aspects to be considered and depending on the facts of the case, the client must coordinate with the correct authorities while following the relevant legislation and procedures.

As a start there are certain international conventions on safety of persons and salvage which must be considered. Malta is a party to different maritime safety and security conventions, such as the International Convention for Safety of Life at Sea (SOLAS), where generally it is the duty of the owner of a shipping company that has assumed the operation of the ship as well as the master of the ship to ensure that they are in compliance with the relevant regulations and requirements. The majority of the international maritime conventions have been ratified into Maltese domestic law.

Moreover, Malta is not a signatory to the Salvage Convention, however, salvage is governed by domestic law provisions. Notwithstanding that, one should ensure that their client enters into the appropriate salvage contract with a salvor on agreeable terms, especially in those instances where international salvage is involved.

There may also be a pollution and environmental exposure and Malta has also adopted the International Convention for the Prevention of Pollution from Ships (MARPOL). Pollution risks should be addressed efficiently since according to this legislation, where a casualty occurs, and such casualty causes a major impact on the marine environment, this is deemed to be a shipping casualty and therefore, relevant provisions under the MSA are applicable including reporting obligations as described under question 1 above.

Additionally, there are certain requirements / documents that need to be submitted in terms of the MSA. For example, the master is to prepare a sea-protest within twenty four hours after an event leading to the damage or loss of a vessel.

It would also be important to advise your client to secure evidence as soon as possible where the owner or operator or master of a ship are to ensure that all charts, log books, electronic and magnetic recordings and video tapes, including information from a VDR, S-VDR or any other recording system relating to the period preceding, during and after the marine accident, including documents or other records, are kept and no alteration is to be made on any recordings.

3. Which parties may be involved, i.e., private entities and public authorities?

A marine casualty can pull in various stakeholders such as shipowners (including managers and operators), masters as well as crew, P&I clubs, insurers, classifications societies, cargo owners, charterers, technical experts and surveyors, local agents, public authorities such as the MSIU, Transport Malta, pollution and marine environment authorities, port authority and even criminal/judicial enforcement.

4. How are Investigations conducted in your jurisdiction? How can the parties/lawyers handle investigations?

Such investigations are regulated by the MSA, where a preliminary inquiry may be carried out in the event of a shipping casualty by a person appointed by the minister responsible for shipping and such person generally goes on board the vessel for its inspection. Once the preliminary inquiry is concluded, an application may be made to the local courts to undertake a formal investigation. The carrying out of a preliminary inquiry and/or a formal investigation does not exclude the obligation to file the reports to the Registry of Ships and MSIU as described in the reply to question 1 above.

5. Could such an event lead to administrative penalties, civil liability, and/or criminal liability? If so, what kind of sanctions or penalties may be imposed and under what timeframe?

Yes, it is possible for a marine casualty to lead to administrative penalties, civil liability and/or criminal liability in Malta including but not limited to failure to comply with the obligations described in these replies. Under the MSA, shipowners, masters, seamen or even an apprentice belonging to a Maltese ship may be liable to penalties, fines, or imprisonment. Additionally, the Registry of Ships in Malta may issue detention order over a vessel following a marine casualty.

6. Can the state or local authority order wreck removal?

As a signatory to the Nairobi Wreck Removal Convention (the “WRC”), Malta, acting through the local transport authority (Transport Malta) may order a wreck removal if a vessel is sunk, stranded or abandoned in Maltese territorial waters and is considered to be an actual or potential danger or obstruction to navigation. Previously to the ratification of the WRC, Malta has its own domestic rules on the removal of wrecks in the MSA, which remain applicable. Malta has transposed the WRC in the form of the Merchant Shipping (Wreck Removal Convention) Regulations (the “WRC Regulations”).

The powers afforded to the State by means of the WRC Regulations include (i) taking possession of and raising, removing or destroying the whole or any part of the vessel; (ii) marking any such vessel until it is raised, removed or destroyed; and (iii) selling any vessel or part thereof, and out of the proceeds of the sale reimburse itself for the expenses incurred.

In addition to powers afforded to the State, the MSA also establishes the ‘receiver of the wreck’ whose main role is the administration of the findings of any wrecks in Malta, including the preservation of the wreck, cargo and of any persons on board.

In line with the WRC’s definition of the “Convention area” and given that Malta has not established an exclusive economic zone, the provisions of the WRC Regulations apply only within the 25-nautical-mile zone measured from Malta’s baselines.

7. What are the basic liabilities and nature of the potential judicial claims that could arise?

Malta adopts fault-based liability for damages arising either from a breach of contract or actions of tort, with claims generally being pursued through our civil courts. Potential judicial claims focus on compensation for alleged damages.

Liabilities under Maltese law stem from contractual breaches, where parties fail to fulfil agreed obligations, and tortious acts which require proof of fault on whether they were conducted intentionally or through negligence or imprudence, whereby the concepts of vicarious and strict liability also apply. Generally, fault is deemed to exist when a person lacks the prudence of a reasonable man.

Compensable damages under our Civil Code include actual loss, incurred expenses, lost earnings and loss of future income; moral (non-pecuniary) damages remain limited. Courts assess amounts on a case-by case basis.

8. Is there a risk of civil public actions for pollution or for damages to fishing or tourism industries?

Yes, under Maltese law there is a clear risk of civil actions which can be brought by public authorities or affected third parties through our civil courts, which are based on general tort liability. Liability is typically fault-based with claimants bearing the burden of proof.

For oil/bunker pollution, Malta’s Merchant Shipping (Liability for Bunker Oil Pollution Damage) Regulations enables civil claims in our courts for compensation, covering damage in Maltese waters. These regulations are based on the provisions of the International Convention on Civil Liability for Bunker Oil Pollution Damage.

As a consequence of Malta being party to several international conventions, strict liability applies in accordance with the applicable maritime conventions, including: (i) the Nairobi International Convention on the Removal of Wrecks, (ii) the International Convention on Civil Liability for Bunker Oil Pollution Damage and (iii) the International Convention on Civil Liability for Oil Pollution Damage.

Affected industries can pursue tort claims for economic losses (e.g., lost profits and loss of future earnings) from pollution or casualties, as demonstrated in cases awarding damages to fishing vessel owners for fire related destruction. Tourism operators could similarly claim under general civil liability for loss of business earnings.

9. Is there a risk of arrest of the vessel, security or other injunctions against the parties involved?

Under our procedural law, Malta’s civil courts may exercise jurisdiction in rem or in personam against ships within Malta’s jurisdiction and therefore a claimant may request the court to issue a warrant of arrest over a vessel. Jurisdiction in rem may be exercised consequent to a shipping casualty including therefore, loss of life and/or personal injury. Such claims may arise from (i) any defect in the ship or its apparel, or (ii) wrongful acts, negligence or defaults by owners, charterers, possessors, master, crew or others in navigating or managing the ship.

Creditors with such claims may seek arrest to obtain security, provided that the vessel (> 10 metres) is within Maltese territorial waters and the claim meets the minimum statutory amount of €7,000. Once arrested, the vessel may be released if the owner puts up adequate security. A warrant of arrest may be issued both to secure claims (precautionary) as well as to enforce claims which have already been determined through a court judgement or other executive title.

Despite not being a party to the 1952 Arrest Convention, Maltese law provisions concerning ship arrest are modelled on it.

10. What are some basic defences available to carriers involved in a maritime casualty in your jurisdiction?

Carriers involved in maritime casualties have several basic defences available to them, reflecting both domestic legislation and international conventions that Malta adheres to.

Common defences include proving that the casualty was caused by circumstances beyond their control, such as force majeure events. Carriers may also defend themselves by showing that the damage resulted from negligence or wrongful acts of third parties, including charterers, cargo owners or other involved entities. Additionally, carriers can invoke contractual defences based on terms in charterparties or bills of lading which may exclude or limit liability for certain types of damages or losses.

Overall, carriers’ defences under Maltese law mirror well-established maritime principles, combining strict liability limitations with fault-based exemptions and contractual protections.

11. How are penalties and/or indemnities quantified and assessed?

Certain maritime casualties attract fixed statutory penalties under Maltese law. For instance, in accordance with the MSA, where a vessel is wrecked, stranded or in distress within Maltese territorial waters, any cargo or articles recovered must be delivered to the Receiver of the Wreck. Any person who unlawfully retains or fails to deliver such property is liable to a statutory fine. However, such administrative fines prescribed in the law operate in addition to (and do not limit) private civil claims. Accordingly, third parties who suffer loss may pursue contractual and/or tortious claims for compensation, with damages assessed in accordance with Maltese civil law principles relating to loss, causation, foreseeability and mitigation. The quantum of damages is generally compensatory in nature and aims to place the injured party, so far as possible, in the position it would have been in had the loss not occurred.

12. Are there any limitation regimes available in your country?

Malta provides for limitation of liability under a statutory regime.

Malta is a signatory to a number of international conventions providing for limitation of liability, including the:¹

1. Protocol of 1992 adopted in London on the 27th November, 1992, amending the International Convention on Civil Liability for Oil Pollution Damage adopted at Brussels on 29 November, 1969, as amended by the Protocol thereto done at London on the 19 November, 1976;
2. Protocol of 2002 to the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea, 1974 ;²
3. Protocol of 1996 to the Convention on Limitation of Liability for Maritime Claims signed in London on the 19th November, 1976 ;³
4. International Convention on Civil Liability for Bunker Oil Pollution Damage signed in London on 23rd March, 2001;⁴

Specifically, Malta has transposed the 1976 Convention on Limitation of Liability for Maritime Claims, as amended by the 1996 Protocol, through the Merchant Shipping (Limitation of Liability for Maritime Claims) Regulations (Subsidiary Legislation 234.16) and related regulations.

13. Which international conventions are in force in your jurisdiction that could be applicable? (Salvage, Wreck Removal, SOLAS, Limitation, etc.?)

Some of the key international conventions to which Malta is a party, and which are applicable, include:

• Nairobi International Convention on the Removal of Wrecks (2007), which was implemented into Maltese law through the Wreck Removal Convention Regulations;
• The Convention Regime for Limitation of Liability: 1976 Convention plus 1996 Protocol (limitation of liability for maritime claims);
• The International Convention for the Prevention of Pollution from Ships (MARPOL) 1973 (plus 1978 Protocol & amendments);
• The International Convention on Civil Liability for Oil Pollution Damage, 1969 (as amended by the 1992 Protocol), implemented through the Oil Pollution (Liability and Compensation) Act,
  1999, Chapter 412;
• The Bunkers Convention (for liability for bunker oil pollution damage) via the Merchant Shipping (Liability for Bunker Oil Pollution Damage) Regulations (Subsidiary Legislation 234.46);
• STCW 1978 in relation to standards of training, certification and watchkeeping for seafarers;
• The International Regulations for Preventing Collisions at Sea (COLREGS) applies in Malta through the Merchant Shipping Act’s Subsidiary Legislation 234.20;
• The International Load Lines Convention (1966) sets mandatory freeboard and load‑line rules to prevent overloading; in Malta it is implemented and enforced through domestic subsidiary legislation (notably the Load Lines Convention Order and the Merchant Shipping (Load Line Convention) Rules);
• The SAR Convention (1979) maintains search and rescue services and ensures that ships and aircrafts assist persons in distress. This is implemented through national SAR plans;
• IMO safety and environmental conventions, such as International Convention for the Safety of Life at Sea (SOLAS) applies to Maltese-flagged vessels.
• The ‘International Convention on Oil Pollution Preparedness, Response and Co-Operation 1990 (OPRC 1990)’ and the ‘Protocol on Preparedness, Response and Co-Operation to Pollution Incidents by Hazardous and Noxious Substances (OPRC-HNS 2000) acceded to by Malta by means of putting in place national preparedness and response arrangements.

14. Any relevant domestic laws that could apply when it comes to mitigating the damages; measures to be adopted and claims for the losses suffered?

Maltese law provides a clear framework for post-casualty claims. Namely, through the MSA which governs shipowner liability and salvage. The WRC Regulations (as defined under question 6) impose wreck-removal duties and discusses insurance and enforcement. Certain pollution claims are covered by the Oil Pollution (Liability and Compensation) Act (Chapter 412 of the Laws of Malta). Additionally, Malta implements a number of other legislations domestically as highlighted above, such as MARPOL, the Bunkers Convention, the Oil and Hazardous Materials Regulations and the Limitation Liability Convention. Lastly, with respect to cargo claims, Malta applies the Hague Rules through the implementation of the Carriage of Goods by Sea Act of 1954. Together these statutes determine liability, insurance, time limits and remedies for salvage, wreck removal, pollution, limitation and cargo losses. Additionally, the principle of contributory negligence in tortuous actions as well as general principles of contract law apply when determining the quantum of damages and whether such should be mitigated.

15. Any other relevant information, news, a practical case or decision regarding the topic you would like to share?

Not applicable.

¹ http://www.imo.org/en/About/Conventions/StatusOfConventions/Pages/Default.aspx
² Merchant Shipping (Carriage of Passengers By Sea) Regulations, Subsidiary Legislation 234.52 Laws of Malta
³ Limitation of Liability For Maritime Claims Regulations, Subsidiary Legislation 234.16 Laws of Malta
⁴ Merchant Shipping (Liability for Bunker Oil Pollution Damage) Regulations, Subsidiary Legislation 234.46 Laws of Malta

Disclaimer: This contribution was originally published as part of the AIJA TLLC Cross-Border Questionnaire: Casualties, Investigations and Liabilities (4th Edition, 2025). Alongside authors Jan Rossi and Gbariel DeBono, the Malta chapter was also co-authored by Simay Cilingir and Giannella Vella.