Ship owner asked to pay ₹125 crore for Kerala mishap

Mumbai: The owner of the container ship 'MSC ELSA 3' that capsized and sank off the Kerala coast on May 25 is liable to pay ₹125 crore for pollution clean-up, salvage, wreck removal and compensation to affected parties, which is 1.32% of the ₹9,531 crore compensation sought by the state government. This is because, per an international treaty known as the Convention on Limitation of Liability for Maritime Claims adopted by the International maritime Organisation, a shipowner's liability is capped depending on the ship's size/tonnage and the nature of the incident. "For MSC ELSA 3, this limit is currently estimated at ₹125 crore. This is the realistic maximum payout under law, not the exaggerated figures being tossed around," a government official said.